Fonterra warns El Niño may curb 2026/27 milk-volume growth

  • Fonterra warned El Niño could affect late-season fiscal 2026/27 milk-volume growth.
  • NZ$2.61 billion represented a 142% increase in Fonterra’s fiscal 2026 profit after tax.
  • Fonterra plans NZ$1 billion South Island investment over three years.

Fonterra warned that El Niño could affect milk-volume growth at the end of the 2026/27 season as the climate pattern raises the risk of droughts, typhoons and weaker global crop output. The World Meteorological Organization says El Niño is expected to strengthen into 2027 and could become the strongest ever. After accounting for the weather risk, Fonterra forecast fiscal 2027 underlying earnings per share of 65 to 85 New Zealand cents, with the midpoint slightly above the 71 cents recorded in fiscal 2026. Fiscal 2026 profit after tax jumped 142% to NZ$2.61 billion, helped by a NZ$1.2 billion gain from selling Mainland Group to Lactalis and strong demand for protein-rich products. Fonterra plans to invest NZ$1 billion over three years to expand its South Island protein-manufacturing network, creating about 50 to 60 permanent roles. It declared a final dividend of 33 New Zealand cents per share, taking the annual payout to 73 cents from 57 cents a year earlier.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.