Fonterra Co-operative Group (NZE:FCG) lowered its forecast farmgate milk price for the 2026 to 2027 season to NZ$9.25 per kilogram of milk solids (kgMS) from NZ$9.75 per kgMS, citing declining prices at recent Global Dairy Trade auctions, according to a Monday filing with the New Zealand bourse.
The company narrowed its forecast range to NZ$8 to NZ$10.50 per kgMS from NZ$8 to NZ$11 per kgMS.
"The change to the 2026/27 forecast reflects softer-than-expected demand at a time of strong global supply," Fonterra Chief Executive Richard Allen said.
The company maintained its farmgate milk price forecast for the 2025 to 2026 season at NZ$9.60 to NZ$9.80 per kgMS, with the midpoint unchanged at NZ$9.70 per kgMS, the filing said.