Earlier in the week, Fonterra reduced its forecast farmgate payout to a midpoint of NZ$9.50kgMS, down from NZ$10.00kgMS. The forecast range was narrowed to NZ$9.00kgMS—NZ$10.00kgMS, from NZ$9.00kgMS—NZ$11.00kgMS.

Fonterra CEO Miles Hurrell said increasing global milk supplies is putting downward pressure on global commodity prices with seven consecutive falls in the GDT index. NZX also noted that milk powder prices have further weakened at GDT Pulse auctions and demand from Southeast Asia, Oceania and the Middle East is weaker. 

Fonterra also lifted its forecast milk collections for the 2025/26 season by 2.4% to 1,545m kgMS, up from previously forecast 1,525m kgMS. Milk production rose 2.8% YOY on a solids basis in October as feed costs remain cheap.