New Zealand Fonterra posts massive profit

By Geoff Adams

Mar 25, 2025

New Zealand dairy giant Fonterra has recorded a billion-dollar operating profit, reported in its interim results for the first half of the financial year.

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The operating profit was up 16 per cent, compared to last year, and the after tax profit of NZ$729 million was recorded on a milk flow of 1.5 million kg of milk solids.

For the current season, the forecast Farmgate Milk Price range for New Zealand suppliers has narrowed from NZ$9.50-$10.50/kg MS to $9.70-$10.30, with the midpoint holding at $10/kg MS.

Fonterra CEO Miles Hurrell said it was pleasing to be able to deliver these results for farmer shareholders and unit holders.

“We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable Farmgate Milk Price,” Mr Hurrell said.

“At the same time, we’re looking ahead as we implement our strategy and continue to invest for the future.

“We have commenced projects to unlock manufacturing production capacity for our Ingredients and Foodservice channels, with site works now under way at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.

“We’re also continuing to invest to future-proof our operations and supply chain network, with work under way on a new Whareroa coolstore and plans for decarbonisation projects at Clandeboye, Edendale, Edgecumbe and Whareroa to secure energy supply and reduce the co-op’s emissions.”

Fonterra New Zealand has reported earnings of NZ44¢ per share and a decision to pay an interim dividend of NZ22¢ per share, alongside a 2024-25 season forecast Farmgate Milk Price midpoint of $10/kg MS.

“We’re seeing good demand for our quality products, and our teams have worked hard to optimise our product portfolio to capture value from the market conditions, leaving us well contracted for the season,” Mr Hurrell said.

“We have also optimised the current season’s advance rate schedule to get cash to farmers sooner, underpinned by our balance sheet strength.

“In terms of milk flows, our forecast milk collections for the year are up 2.7 per cent on this time last year to 1510 million kg MS.

“This follows favourable pasture growth across most of New Zealand earlier in the season, noting many parts of the country are currently experiencing very dry conditions.”