Fonterra and Tatua signal cautious optimism as farmgate milk price forecasts remain steady for the upcoming season.
New Zealand’s leading dairy processors, Fonterra and Tatua, have released their opening milk price forecasts for the 2025-26 season, setting the tone for farmer expectations. Both co-operatives point to a cautiously stable outlook, balancing international market volatility with resilient demand for high-value dairy exports.
Fonterra has projected a farmgate milk price range of NZ$7.25 to NZ$8.75 per kg of milk solids, with a midpoint of NZ$8.00. CEO Miles Hurrell highlighted the importance of diversification and efficiency in navigating global headwinds, including shifting demand patterns and trade uncertainties.
Tatua, known for its strong niche product portfolio, announced an opening forecast of NZ$8.40 per kgMS. The co-operative continues to outperform industry averages by leveraging specialty ingredients and value-added exports, underlining the advantage of differentiated product strategies in competitive global markets.
Both processors caution that volatility remains a defining factor. Currency fluctuations, evolving demand in China, and competition from alternative dairy suppliers are expected to influence payout levels. However, strong fundamentals in global dairy consumption and New Zealand’s reputation for quality are providing confidence for the sector.
The 2025-26 forecasts suggest a period of relative stability for farmers after recent years of sharp fluctuations. While uncertainties persist, co-operatives emphasize resilience and long-term growth opportunities, reassuring producers that disciplined strategies will help sustain competitive payouts.
Source: Rural News Group — Original article
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
