Fonterra's lowered this season's forecast milk payout following the recent drop in global dairy prices. 

The midpoint has dropped from $9.75 to $9.25 – well below the $9.70 payout currently forecast for last season. 

Prices at Global Dairy Trade auctions have fallen 11% since the opening forecast was announced in May. 

Fonterra CEO Richard Allen told Mike Hosking demand has been softer than anticipated, while production —globally and in New Zealand— has been very strong. 

He says overall demand is still there, it’s just not quite as strong as they thought it was going to be. 

LISTEN ABOVE 

Fonterra's lowered this season's forecast milk payout following the recent drop in global dairy prices.&nbsp;
The midpoint has dropped from $9.75 to $9.25 – well below the $9.70 payout currently forecast for last season.&nbsp;
Prices at Global Dairy Trade auctions have fallen 11% since the opening forecast was announced in May.&nbsp;
Fonterra CEO Richard Allen told Mike Hosking demand has been softer than anticipated, while production —globally and in New Zealand— has been very strong.&nbsp;
He says overall demand is still there, it’s just not quite as strong as they thought it was going to be.&nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.The sharpest voice and mind in the business, Mike drives strong opinion,...

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Richard Allen: Fonterra CEO explains cuts to the 2026/27 Milk Price Forecast

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/e96b035a-6a91-44e4-ba61-b4860163f7c9/transcript