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Fonterra Cuts Milk Price Forecast Amid Demand Slump
13 Jul
Summary
- Fonterra trimmed its 2026/27 milk price forecast range.
- Softer demand and higher global supply are impacting prices.
- Global Dairy Trade prices have fallen 11% since May.
New Zealand's dairy cooperative, Fonterra, announced on July 13, 2026, a revised milk price forecast for the upcoming 2026/27 season. The company has lowered the upper end of its projected farmgate milk price range to NZ$10.50 per kilogram of milk solids (kgMS), down from NZ$11.00. This adjustment reflects current market conditions characterized by softened demand and a robust global milk supply.
This revision follows an 11% decrease in Global Dairy Trade prices for relevant products since the opening forecast was issued in late May 2026. Concurrently, milk production from major exporting nations has increased compared to the previous year. Despite these challenges, Fonterra anticipates a strong start to New Zealand's dairy season, though the potential impact of El Nino on global supplies remains a speculative factor.
