Dairy prices to hold firm, but geopolitical environment casting a shadow

Dairy prices are strong but processors do not want to start high and then have to cut, as happened in 2023. (Image: NZME)

Riley Kennedy

Thu, 05 Jun 2025

Expectations are that dairy prices will hold firm in the season ahead, but ongoing geopolitical disruption is creating some uncertainty.Generally, when Fonterra issues a milk-price forecast, it issues a range with a midpoint at which its advance rates are paid to.But when it put out its opening forecast last week, it still issued a range – of between $8/kgMS (per kilo milksolids) and $11/kgMS – but opted for an opening price, at which the advance rate will be paid at, of $10/kgMS, 50c/kgMS above the range’s midpoint.It caught...

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