Fonterra's milk price will put farmers under pressure

Global milk production is still growing but is losing steam. (Image: Fonterra)

Fri, 09 Jun 2023

Fonterra’s opening milk price for the current season will make dairy farm profitability “a real challenge”, said Rabobank senior agricultural analyst Emma Higgins.“While profitability depends on farming systems and management styles, forecast farmgate milk prices are at or below Rabobank’s estimation of average costs of production,” she said. In late May, Fonterra opened the new dairy season with a forecast farmgate milk price of $7.25 to $8.75 per kilogram of milksolids (kgMS), with a midpoint of $8.00...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Property

Du Val pair ordered to pay costs

The Clarkes are to pay the markets regulator following the asset seizure hearing.

Maria Slade 1:00pm

Property

Auckland developer collapse leaves $40m in debt

Between all firms, debts with the IRD are about $25 million.

Gregor Thompson 11:56am

Auckland developer collapse leaves $40m in debt

Markets

Trump's trade war hits the NZX

The kiwi dollar fell to a six-month low against the greenback.

Rebecca Howard 11:40am

Sponsored

The risks of powering New Zealand’s data boom

Sydney has curbed data centres to save power and water. Can New Zealand plan more wisely?

Dentons

Sponsored

Spedding Rd powers Auckland growth

$56m in new infrastructure unlocks business opportunities.

Oyster Capital Spedding Road

More Primary Sector

Primary Sector

Alliance chair urges farmers to vote on Dawn deal: ‘Every vote counts’

Staff reporters 4:28pm

Primary Sector

Napier Port on track to beat earnings guidance, Jarden says

It released its fourth-quarter volumes on Friday.

Staff reporters 10:10am

Primary Sector Rare Returns

Rare Returns: the state of NZ’s red meat sector

NZ’s red meat price rebounds, but cracks in the system are hard to ignore.

Riley Kennedy 5:00am

Primary Sector

Government to lower 2050 methane reduction target range

The Government is lowering its 2050 methane reduction target and confirming a review will take place in 2040 to assess whether New Zealand’s reduction efforts align with high-emissions countries.Cabinet will soon approve a new target range of 14–24% below 2017 methane emission le...

Staff reporters 12 Oct 2025

Fonterra's milk price will put farmers under pressure

More Primary Sector

Your company has a subscription

Team