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Fonterra Raises 2025/26 Milk Price Forecast to NZ$9.20–9.80, Plans 14–18c Special Dividend

The planned payout relies on Mainland Group earnings following the Lactalis sale.

The Fonterra Te Rapa dairy factory is seen outside Hamilton March 30, 2016.  REUTERS/Henning Gloystein

Overview

  • Fonterra lifted its farmgate milk price range for 2025/26 to NZ$9.20–NZ$9.80 per kgMS from NZ$8.50–NZ$9.50.
  • It expects a special dividend of 14–18 New Zealand cents per share, funded by Mainland Group’s fiscal 2026 underlying earnings.
  • The dividend would be paid after the consumer-business sale to Lactalis closes, which Fonterra expects in the first quarter of 2026.
  • The cooperative cited stronger global dairy commodity prices and a firm sales book, noting four consecutive Global Dairy Trade auction gains.
  • Guidance for continuing operations remains unchanged at 45–65 New Zealand cents per share.