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

Enda Brady: UK correspondent on the heatwave impacting the UK
04:22

Jason Boyes: Infratil CEO on the company's full-year result
06:23

Full Show Podcast: 26 May 2026
1:40:30