Fonterra, a New Zealand-based multinational dairy cooperative, announced a record-high milk payout forecast of $12.30/kg MS for its organic suppliers. This move reflects rising global demand and constrained supply, particularly from the United States, and marks a notable boost for over 100 organic dairy farmers, mainly in the North Island.
New Zealand’s leading dairy cooperative, Fonterra, has announced a record midpoint forecast of $12.30 per kilogram of milk solids (kg MS) for its organic milk suppliers for the 2024-2025 season. The updated range stands between $11.30 and $13.30/kg MS, marking the highest forecast for the cooperative’s organic segment to date.
Fonterra, which operates as a farmer-owned multinational dairy company, supplies dairy nutrition to more than 140 countries. With more than 100 organic milk suppliers—mainly located in the North Island of New Zealand—the company continues to lead in the organic and sustainable dairy sector.
Anne Douglas, Group Director of Farm Source at Fonterra, explained that the strong forecast reflects a combination of robust customer demand and supply constraints in global markets, particularly in the United States. She said, “We’re seeing sustained interest in organic dairy products, particularly from high-value markets, at a time when global supply remains tight.”
Fonterra also raised its season forecast midpoint from $11.80/kg MS to $12/kg MS, signaling optimism despite ongoing market uncertainties. The cooperative projects a 25% increase in sales for financial year 2025 compared to the previous year.
Douglas emphasized Fonterra’s strategic approach to organic supply growth, noting that supplier numbers are increasing at a steady 2-3% annually. She added, “We aim to maintain a balance that supports premium returns to our farmers while meeting demand in key markets.”
The announcement is expected to encourage more interest in organic dairy farming within New Zealand and bolster the sector’s contribution to sustainable agriculture and export earnings.
Fonterra’s decision comes at a time when global consumers are prioritizing organic and ethical food production, positioning the cooperative and its farmers for continued success in the premium dairy category.
For more details, visit Fonterra’s official website.
