Rural lending specialist Rabobank expects the 2026-27 dairy season to be another strong one for farmgate milk prices, but says rising inflation will take its toll.

After a string of strong Global Dairy Trade (GDT) auctions, Rabobank expects a robust opening milk price from dairy co-op Fonterra of $9.50 to $10.00 per kg of milksolids for the 2026-27 season.

However,  the bank said the inflationary impacts of geopolitical disruption were likely to squeeze farmer margins in the new season.

The Country's Jamie Mackay explained further.

LISTEN ABOVE

Rural lending specialist Rabobank expects the 2026-27 dairy season to be another strong one for farmgate milk prices, but says rising inflation will take its toll.
After a string of strong Global Dairy Trade (GDT) auctions, Rabobank expects a robust opening milk price from dairy co-op Fonterra of $9.50 to $10.00 per kg of milksolids for the 2026-27 season.
However, &nbsp;the bank said the inflationary impacts of geopolitical disruption were likely to squeeze farmer margins in the new season.
The Country's Jamie Mackay explained further.
LISTEN ABOVE

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Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

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Jamie Mackay: The Country host on Fonterra's opening shot for the 26/27 season forecast milk price

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/0064a13e-3997-4fc1-aebc-b456007ac2e5/transcript