WELLINGTON, Dec. 18 (Xinhua) -- New Zealand's dairy giant Fonterra on Thursday cut its forecast Farmgate Milk Price for the 2025/26 season, citing strong global milk supply and a firmer New Zealand dollar.
The co-operative group revised its forecast range to 8.5-9.5 NZ dollars (4.9-5.47 U.S. dollars) per kilogram of milk solids (kgMS), down from 9-10 NZ dollars, lowering the midpoint to 9 NZ dollars from 9.5 NZ dollars, said a Fonterra statement.
Fonterra Chief Executive Miles Hurrell said the adjustment reflected continued strong milk flows both in New Zealand and globally, particularly from the United States and Europe, which are weighing on global dairy commodity prices.
A strengthening New Zealand dollar since November had also pressured returns, Hurrell said.
Fonterra began the season with a wider forecast range of 8-11 NZ dollars per kgMS, and the revised midpoint of 9 NZ dollars per kgMS remains within that range, he added. ■
