Farmgate Milk Price

Fonterra currently collects the bulk of New Zealand’s milk production.
Because Fonterra purchases such a large proportion of New Zealand’s total milk, there is no market price for milk that is independent of the price paid by Fonterra.

As a result, since its formation in 2001, Fonterra has calculated a Farmgate Milk Price that enables total returns to be allocated between payments for milk and returns on the capital invested by Fonterra farmer shareholders and by unit holders in the Fonterra Shareholders’ Fund.

Forecast & Payout

New Season 2022/2023

  Farmgate Milk Price
per kgMS
Forecast Earnings Press releases
Forecast Update 9 september 2022 No change Forecast earnings per share range: 45-60 cents Available here
Forecast Update 26 August 2022 $8.50 - $10.00 No change Available here
Forecast Update 23 June 2022 $8.75 - $10.25 Forecast earnings per share range: 30-45 cents Available here
Opening Forecast 26 May 2022 $8.25 - $9.75 N/A Available here

Latest Season 2021/2022

  Farmgate Milk Price
per kgMS
Forecast Earnings Press releases
Final Update 22 September 2022 $9.30 35 cents earnings per share Available here
Forecast Update 26 May 2022 $9.10 - $9.50 Forecast earnings per share range 25-35 cents Available here
Forecast Update 9 May 2022 $9.10 - $9.50 N/A Available here
Forecast Update 24 February 2022 $9.30 - $9.90 Forecast earnings per share range 25-35 cents Available here
Forecast Update 25 January 2022 $8.90 - $9.50 Forecast earnings per share range: 25-35 cents Available here
Forecast Update 3 December 2021 $8.40 -$9.00 Forecast earnings per share range:  25-35 cents Available here
Forecast Update 26 October 2021 $7.90 - $8.90 Forecast earnings per share range: 25-40 cents Available here
Forecast Update 23 September 2021 $ 7.25 - $8.75 Forecast earnings per share range: 25-40 cents Available here
Opening Forecast 26 May 2021 $ 7.25- $8.75 N/A Available here

2020/2021 Season

  Farmgate Milk Price
per kgMS
Forecast cash payout
(milk price plus dividend)
Forecast payout
(milk price plus earnings)
Press releases
Final Update 23 September 2021 $7.54 $7.74   Available here
Forecast Update 26 May 2021 $7.45 - $7.65 N/A Forecast earnings per share range:  25-35 cents Available here
Forecast Update 17 Mar 2021 $7.30 - $7.90 N/A Forecast earnings per share range:  25-35 cents Available here
Forecast Update 5 Mar 2021 $7.30 - $7.90 N/A N/A Available here
Forecast Update 3 Feb 2021 $6.90 - $7.50 N/A N/A Available here
Forecast Update 4 Dec 2020 $6.70 - $7.30 N/A Forecast earnings per share range: 20-35 cents Available here
Forecast Update 15 Oct 2020 $6.30 - $7.30 N/A   Available here
Forecast Update 18 Sept 2020 $5.90 - $6.90 N/A Forecast earnings per share range: 20-35 cents Available here
Forecast Update 1 Sept 2020 $5.90 - $6.90 N/A N/A Available here
Forecast Update 17 July 2020 $5.90 - $6.90 N/A N/A Available here
Opening Forecast 21 May 2020 $5.40 - $6.90 N/A N/A Available here

2019/2020 Season

  Farmgate Milk Price
per kgMS
Forecast cash payout
(milk price plus dividend)
Forecast payout
(milk price plus earnings)
Press releases
Final Update 18 September 2020 $7.14 $7.19   Available here
Forecast Update 17 July 2020 $7.10 - $7.20 N/A N/A Available here
Forecast Update 21 May 2020 $7.10- $7.30 N/A Forecast normalised earnings per share range 15-25 cents Available here
Forecast Update 18 March 2020 $7.00-7.60 N/A Forecast normalised earnings per share range 15-25 cents Available here
Forecast Update 27 February 2020 $7.00 - $7.60 N/A Forecast normalised earnings per share range 15-25 cents Available here
Forecast Update 5 December 2019 $7.00 - $7.60 N/A Forecast earnings per share range 15-25 cents Available here
Forecast Update 22 October 2019 $6.55 - $7.55 N/A N/A Available here
Forecast Update 26 September 2019 $6.25 - $7.25 N/A Forecast earnings per share range 15-25 cents Available here
Forecast Update 3rd September 2019 $6.25 - 7.25 N/A N/A Available here
Opening Forecast 23 May 2019 $6.25 - $7.25 N/A N/A Available here

2018/2019 Season

  Farmgate Milk Price
per kgMS
Forecast payout
(milk price plus earnings)
Press releases
Final Update 26 September 2019 $6.35   Available here
Forecast Update 23 May 2019 $6.30-$6.40 Forecast earnings per share 10-15 cents Available here
Forecast Update 20 March 2019 $6.30-$6.60 Forecast earnings per share 15-25 cents Available here
Forecast Update 28 February 2019 $6.30-$6.60 Forecast earnings per share 15-25 cents Available here
Forecast Update 6 December 2018 $6.00-$6.30 Forecast earnings per share 25-35 cents Available here
Forecast Update 10 October 2018 $6.25-$6.50   Available here
Forecast Update 13 September 2018 $6.75 $7.00-$7.10 Available here
Forecast Update 31 August 2018 $6.75 N/A Available here
Opening Forecast 24 May 2018
$7.00 N/A Available here

2017/2018 Season

  Farmgate Milk Price
per kgMS
Forecast cash payout
(milk price plus dividend)
Forecast payout
(milk price plus earnings)
Press releases
Final Update 13 September 2018 $6.69 $6.79   Available here
Forecast Update 10 August 2018 $6.70 $6.80 $6.95-$7.00 Available here
Forecast Update 24 May 2018
$6.75
$6.90-$6.95 $7.00-$7.05
Available here
Forecast Update 21 March 2018 $6.55 $6.80-$6.90 NA Available here
Forecast Update 7 December 2017 $6.40 NA $6.75-$6.85 Available here
Forecast update 25 September 2017 $6.75 NA $7.20-$7.30 Available here
Forecast update 27 July 2017 $6.75 NA $7.20-$7.30 Available here
Opening forecast 24 May 2017 $6.50 NA NA Available here

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Regulatory Information

Industry Regulations

The Dairy Industry Restructuring Act 2001

Milk Price Methodology

For milk delivered to the farm gate by farmer shareholders.

Advanced Payment Rates

The percentage of the forecast Farmgate Milk Price paid on actual milk volume collected.