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

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 See omnystudio.com/listener for privacy information.