Chief executive Miles Hurrell.
Photo: RNZ/Marika Khabazi
- Expects to distribute Mainland Group earnings as a special dividend
- Confirms FY26 forecast earnings guidance from continuing operations
- Lifts 2025/26 season forecast farmgate milk price midpoint from $9.00 to $9.50 per kilo of milk solids
Dairy co-op Fonterra has raised the forecast farmgate milk price for the 2025/26 season and narrowed its forecast range, amid volatile trading conditions.
“Global milk production remains above seasonal norms, meaning the risk of further volatility in pricing remains. As such, we continue to take a balanced approach with our farmgate milk price forecast,” chief executive Miles Hurrell said.
“The co-op has been able to make these changes based on recent improvements in global commodity prices combined with Fonterra’s well contracted sales book.”
Hurrell said global dairy prices had been volatile across the season.
“Following the declines at the end of 2025, prices have lifted in the last four Global Dairy Trade events.”
Update on Mainland Group
Hurrell said Fonterra intended to pay out 100 percent of underlying earnings generated by Mainland Group during FY26, while still under Fonterra ownership, to shareholders and unit holders following the completion of the sale to Lactalis.
“We are currently finalising our interim accounts and can indicate that we expect the special Mainland dividend to be in the range of 14-18 cents per share, which reflects the operating performance of the Mainland business during the first half of this year driven by ongoing cost management and favourable input commodity prices,” he said.
The details of the special dividend and interim dividend from continuing operations would be confirmed when Fonterra released its interim results.
Hurrell reaffirmed FY26 forecast earnings guidance from continuing operations at between 45 and 65 cents per share.
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