Fonterra forecasts $10/kg milk price, narrows earnings range

Fonterra has announced a forecast opening farmgate milk price of $10 per kilogram of milk solids for the 2025/26 season.

The cooperative also reported a 11% increase in normalised profit after tax for the third quarter, reaching $1.15 billion.

As a result of these strong earnings, Fonterra narrowed its full-year earnings range to 65-75 cents per share, at the upper end of the previous guidance.

The return on capital for the 12 months was 11%, down from 11.9%.

Fonterra's chief executive, Miles Hurrell, said the cooperative's focus on its high-performing ingredients and foodservice businesses has driven the strong results.