Fonterra’s latest Global Dairy Update forecasts milk collections of 1,545m kgMS in the 2025/26 season with a forecast milk price in the range of NZ$8.50kgMS—NZ$9.50kgMS. Both forecast milk collections and forecast milk price are unchanged from the previous forecast.

December milk production rose 2.5% YOY, brining seasonal collections 2.6% ahead of the prior season comparative. The lift in production is attributed to higher collections in the South Island (+5.6% YOY) where favourable weather conditions prevailed and continuous improvement in on-farm management support pasture growth and cow conditions. In the North Island, production rose +0.1% YOY for the month, due to good pasture conditions with higher soil moisture along the East and West coasts. This was partially offset by hotter, drier conditions in Northland, Bay of Plenty and Central areas.