The high supply of milk worldwide has meant New Zealand dairy farmers have had to lower their expectations regarding future payouts. PHOTO: TIM CRONSHAWSouth Island dairy farmers are waving goodbye to another double-digit milk payout as global supplies remain stubbornly high over the 2025-26 season. The season started with Fonterra sweeping a wide brush in its opening forecast range of $8-$11 a kilogram of milk solids. Unlikely to be repeated now is the double-digit record $10.16/kg midpoint for the 2024-25 season. Federated Farmers Dairy chairman Karl Dean said many farmers would have written off a repeat of last season’s payout.

Source: Otago Daily Times January 23, 2026 16:45 UTC