Fonterra lifts milk price forecast for 2025/26
Co-op flags special dividend from Mainland earnings
20 February 2026
1 minute read
By: New Zealand dairy giant Fonterra Co-operative Group lifted its milk price forecast range for the 2025/2026 season on Friday, and said it intends to declare a special dividend supported by earnings from its Mainland Group, reported Reuters.
The dairy producer raised its annual forecast range for farmgate milk price — the price it pays to farmers for milk — to NZ$9.20-NZ$9.80 per kilogram of milk solids (kgMS), from prior expectations of NZ$8.50-NZ$9.50 per kgMS.
The hike is based on the favourable global commodity prices and its strong sales book, the dairy cooperative said.
"Following the declines at the end of 2025, prices have lifted in the last four Global Dairy Trade events," said Miles Hurrell, Fonterra's chief executive officer.
The company said that it intends to pay out a special dividend from the entire fiscal 2026 underlying earnings generated by Mainland Group, which was part of a NZ$4.22 billion ($2.52 billion) deal signed last year.
Fonterra had agreed to divest its global consumer and associated businesses to French dairy major Lactalis.
It expects the special dividend to be in the range of 14-18 New Zealand cents per share, with the payout expected following the completion of the sale to Lactalis in the first quarter of 2026.
Fonterra left its earnings forecast from continuing operations for fiscal 2026 unchanged at 45-65 New Zealand cents per share.
($1 = 1.6753 New Zealand dollars)
