A cut to the milk price isn’t as bad as it sounds

Fonterra’s first-quarter business update is due next week. (Image: Fonterra)

Wed, 26 Nov 2025

Fonterra Co-operative Group’s forecast farmgate payout might have dropped back, but it still sits at historically high levels.On Tuesday, the co-op shaved 50c off its midpoint, dropping to $9.50/kgMS while narrowing its range from $9/kgMS to $11/kgMS to between $9/kgMS to $10/kgMS.While its latest cut was largely expected after seven consecutive falls at the Global Dairy Trade (GDT) auctions, it is the first mid-season drop since 2023, during a period in which it dropped rapidly.Still, a milk price of $9.50/kgMS is down on the previous se...

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