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Andrew Hoggard.
Fonterra's lifting of the current season payout to $6.15/kgMS highlights the revival in the fortunes of dairy farms, says Federated Farmers.
The favourable forecast wasn’t unexpected and reflects the recent trend of increasing global dairy prices, which has fostered more confidence amongst the markets.
“This is great news and comes after a turbulent few years where the industry has been under the pump,” says Andrew Hoggard, Federated Farmers dairy chair.
Based on Fonterra’s forecast and current production cycles, about $280 million dollars is expected to flow through the New Zealand dairy sector and provincial communities this season.
“If you take on board the amount of milk we are producing at present this means the average dairy farm will be about $23,000 dollars better off.
“This will enable farmers to invest in their business and farm infrastructure, which has perhaps not been a priority in the past two years in trying to survive the challenging times.
“We’ll also have more money to [spend on achieving] our environmental goals, the focus for many farmers in spite of modest returns from their businesses.”
NZ dairying employs at least 40,000 workers and contributes much to regional economic development.
“The regional economies and service centres will also be boosted as farmers prepare to spend again, now they are more certaint about their businesses.”
Fonterra’s predicted payout of $6.50/kgMS would mean a further $650m going into provincial economies.
Federated Farmers has called on Central Otago District Council (CODC) to drop or vote down a plan to truck sludge from Alexandra and Cromwell to farmland near Lauder, warning it would compound an "outrageous" situation created by a separate council's decision weeks earlier.
Fonterra has unveiled its annual results for the 2026 financial year, posting $27 billion in revenue and close to $20 billion returned to New Zealand farmer owners and unit holders.
Federated Farmers says new legislation replacing the Resource Management Act will cut red tape, unlock investment and help grow New Zealand's export-led economy, after the Planning Bill and Natural Environment Bill passed their third reading in Parliament yesterday.
Leading figures from the major political parties will be questioned on their primary sector policies at the Rural Issues Debate at Mystery Creek Events Centre, Hamilton, on 30 September.
OPINION: Well, the silly season is upon us and all us politicians are running around shaking babies and kissing hands, or maybe the other way around.
The Royal New Zealand College of General Practitioners (the College) and Hauora Taiwhenua Rural Health Network are calling for investment in a proposed new training pathway for rural GPs, warning that many rural practices are struggling to recruit while a large share of the existing workforce nears retirement.
Federated Farmers has called on Central Otago District Council (CODC) to drop or vote down a plan to truck sludge from Alexandra and Cromwell to farmland near Lauder, warning it would compound an "outrageous" situation created by a separate council's decision weeks earlier.
Synlait has swung to second-half profit as operations stabilise, but the dairy processor still posted a $75.4m annual loss.
LIC shareholders have elected a new North Island representative to the co-operative's Board, along with five representatives to its Shareholder Reference Group (SRG), following the company's Annual Meeting held in Invercargill.
Farmers across parts of Southland and South Otago are continuing to deal with difficult conditions after a prolonged run of wet weather, with pressure building around feed supply, stock management, pasture damage, farm infrastructure and everyday workloads.
Federated Farmers says it welcomes Labour's commitment to reviewing the Sharemilking Agreements Act, calling on other major parties to do the same.
OPINION: It seems Canterbury processor Synlait is still in the doldrums.
OPINION: Get offside with New Zealand First leader Winston Peters at your own peril.
