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Forecasts show high milk prices as farmers face tightening margins

Author
Newstalk ZB,
Publish Date
Tue, 26 May 2026, 9:31am
Photo / Getty Images.
Photo / Getty Images.

Forecasts show high milk prices as farmers face tightening margins

Author
Newstalk ZB,
Publish Date
Tue, 26 May 2026, 9:31am

This past dairy season is all-but-confirmed as record breaking but remaining at those lofty heights will be farmers' next challenge.  

Rabobank expects milk supply to stay elevated into 2026-27, with farmgate prices forecast between $9.50 and $10 per kilogram. 

But rising inflation could squeeze margins. 

Fonterra Co-Operative Council Chair John Stevenson told Mike Hosking in terms of returns, there’s no doubt it’s a good time. 

He says they’ve seen strong milk prices and Fonterra farmers have seen strong returns on their shares, but the thing to look out for are input costs, which are continuing to creep up. 

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