New Zealand dairy giant Fonterra has raised its full-year earnings guidance to 50–65 NZ cents per share, up from the earlier 45–65 NZ cents, reflecting improved global commodity prices, strong margins and disciplined cost control despite rising geopolitical uncertainties. The company reported a 3% increase in half-year profit to NZ$750 million for the six months ending January 31, driven by strong performance in high-value segments, with its ingredients business delivering an 11% return on capital and foodservice 12.6%, supported by robust protein demand and pricing.
Fonterra also strengthened farmer returns by raising its farmgate milk price forecast to NZ$9.40–NZ$10.00 per kgMS, signalling confidence in global dairy demand, while declaring an interim dividend of 24 NZ cents per share and a special dividend of 16 cents linked to its Mainland business. The cooperative highlighted that strong milk flows and operational efficiency have supported performance, even as adverse weather conditions posed challenges.
However, the company flagged the Middle East conflict as a key risk, warning it could disrupt supply chains, increase inventory levels and raise costs in the second half of the year, contributing to commodity price volatility. With a significant share of global dairy trade exposed to affected shipping routes, Fonterra remains cautious, positioning the region as a critical “watchpoint” for future performance.
Source: Dairynews7x7 23 March, 2026 Read full story here
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