Fonterra has lifted the midpoint of its forecast farmgate milk price by 25 cents to $9.50 per kilogram of milk solids, and raised and narrowed the range to $8–10.50, citing better commodity prices at recent Global Dairy Trade auctions.

"Since our last update in July, GDT auction results for key commodity products, particularly whole milk powder and skim milk powder, have improved. Globally, we continue to see strength in demand," chief executive Richard Allen said, while cautioning that geopolitical volatility remains and that with only two months of the season complete, "things can always change".

The most recent auction, on 16 September, actually slipped 1.1 per cent on a mixed board: cheddar up 16.5 per cent, mozzarella down 6, butter down 5.7 and anhydrous milk fat down 3, with skim milk powder up 0.1 and whole milk powder down 0.8 per cent. The 2 September auction had risen 0.9 per cent on a strong skim milk powder result.

Fonterra reports its 2026 financial result on 24 September. Allen said earlier this month that underlying earnings should land at the top of the 60–70 cents-a-share range, "supporting a strong full-year dividend", after the co-operative maintained solid performance through the year.

Rival processor Synlait reports on 28 September and has told the NZX to expect a net loss after tax of $70–75 million and an underlying net loss of $19–24 million. Acting chief executive Leon Fung said the results would be "a long way from where we want them to be" but would show improvement as the company works through its recovery roadmap.

Source: Farmers Weekly NZ