The company said dairy markets remained resilient even as supply chains faced disruption linked to the conflict in the Middle East. Shipping delays affecting cargoes destined for Gulf markets emerged after military strikes on Tehran earlier this year, contributing to inflationary pressures and logistical challenges across international trade routes.

Chief executive Richard Allen said milk collections are expected to remain strong heading into the next season, supported by healthy demand across global markets. Fonterra also unveiled an opening milk price forecast for the 2026-2027 season, with a midpoint of NZ$9.75 per kgMS and a wide projected range between NZ$8.00 and NZ$11.00.

Financially, the cooperative delivered year-on-year operating profit growth, lifting total operating earnings to NZ$1.8 billion during the fiscal third quarter. Underlying earnings per share increased to NZ$0.57 from NZ$0.53 a year earlier. The performance was driven largely by sustained protein demand in the United States and Europe, alongside stronger margins and sales volumes in Fonterra’s foodservice division.