New Zealand’s largest dairy cooperative is forecasting a milk price of NZ$10kgMS—both for the opening 2025/26 season price and the full 2024/25 season.
The 2025/26 forecast milk price is a wide range, NZ$9.00kgMS—NZ$11.00kgMS. Announcing the opening price, CEO Miles Hurrell expects demand to continue for now, but acknowledged the ongoing geopolitical uncertainty and the potential for a wider series of outcomes.
Fonterra reported net profits after tax lifted 11% to NZ$1.16bn in it’s Q3-25 Business Update. Hurrell reported rolling 12-month Return on Capital is 11%, above Fonterra’s previous target for FY25.
Fonterra flagged flat earnings for Q4-25 due to the seasonality of milk collections, higher input prices for its Consumer and Foodservice units, ongoing investment in ERP systems and an increase in costs associated with the Mainland divestment.
Hurrell expects a strong balance sheet and full year debt metrics to be below Fonterra’s target range for FY25.
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