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Fonterra's organic suppliers will get $9.25/kgMS as advance rate for milk supplied for the first four months of the new season.
Fonterra has announced a record forecast opening organic milk price of $12.30/kgMS for the new season.
The co-op’s organic suppliers will get $9.25/kgMS as advance rate for milk supplied for the first four months of the new season – June to September.
Fonterra’s organic supply manager Stuart Luxton says the record price shows the increase in demand for their top-quality products and “really delivers back to our hardworking organic farmers”.
Meanwhile Fonterra has lifted last season’s organic milk price to $12/kgMS.
Last week Fonterra also announced a record opening forecast milk price for conventional milk - $10/kgMS.
Recently Organics New Zealand released its 2025 Organic Sector Market Report, which noted that the sector has grown from $723 million in 2020 to $1.18 billion in 2024. Exports totalled NZ$606.7 million, growing at nearly twice the rate of total primary sector exports.
Organic dairy is the second biggest sector, with exports up 39.5% from 2020 to $214 million.
Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS - NZ74c less than New Zealand suppliers, based on the current exchange rate.
A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.
Fonterra has announced an improved third quarter performance – with a profit after tax of $1.15 billion, up $119 million on the same period last year.
The 2025-26 season is set to start on a high and a $10/kgMS opening forecast milk price isn't being ruled out.
Consumers around the world are willing to pay more for products containing dairy and this is driving demand for butter and cream, says Fonterra.
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Fonterra has announced a record forecast opening organic milk price of $12.30/kgMS for the new season.
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