Fonterra Annual Results: NZ$27 Billion Revenue and a NZ$9.69 Farmgate Milk Price
The latest Fonterra annual results show a strong year for New Zealand’s giant dairy cooperative. Fonterra reported revenue of NZ$27 billion for FY26. It also reported an after-tax profit of NZ$2.6 billion. Farmers will pay close attention to the final farmgate milk price of NZ$9.69 per kilogram of milk solids (kgMS) and a full-year dividend of 73 cents per share.
Fonterra annual results at a glance
The headline figures come from the report on the cooperative’s FY26 performance. Total operating profit rose to NZ$3.4 billion, up from NZ$1.7 billion a year earlier. However, that total includes a one-off NZ$1.2 billion benefit from the Mainland divestment.
Therefore, the underlying picture is more useful for farmers. The continuing business delivered an underlying operating profit of NZ$1.8 billion. After-tax profit from continuing operations was NZ$1.2 billion, or 71 cents per share.
Return on capital reached 14.2%. That is above the cooperative’s 10% to 12% target range. In short, the Fonterra annual results beat the stated goal on this key measure.
Ingredients and foodservice lead the profit
Two divisions did most of the work. The Ingredients business earned NZ$1,293 million in operating profit. Foodservice added NZ$547 million. Together they show how the cooperative earns from both bulk dairy products and value-added sales to restaurants and food businesses.
Chairman Peter McBride said the cooperative delivered at the top end of its performance expectations. Chief executive Richard Allen credited record shipping volumes and better delivery performance. He noted that weather events and geopolitical volatility made the year difficult.
What the Fonterra annual results mean for farmers
The final 2025-26 farmgate milk price was NZ$9.69 per kgMS. Organic milk did even better and reached a record NZ$14.13 per kgMS. In addition, the board declared a final dividend of 33 cents per share. With the earlier payment, the full-year dividend comes to 73 cents per share, fully imputed.
For shareholders, the Fonterra annual results combine a firm milk price with a dividend. That mix supports farm incomes at a time when feed, fertiliser and interest costs remain high. Meanwhile, the organic premium shows that niche markets can pay well when demand is steady.
Organic growth and the road ahead
Fonterra also confirmed plans to expand its organic milk business into the South Island. This move follows the strong organic payout. Organic supply needs time, because farms must convert land and herds before they can supply certified milk.
Looking ahead, global dairy prices, shipping costs and trade tensions will decide the next season. The Fonterra annual results give the cooperative a healthy base. Even so, the divestment gain will not repeat, so farmers should expect profit to look different next year.
Why global buyers watch these results
Fonterra is one of the world’s largest dairy exporters. Its price decisions and volumes influence Global Dairy Trade auctions and buyers from Asia to Africa. As a result, the Fonterra annual results matter well beyond New Zealand. Importers in India, China and Southeast Asia read them as a signal of supply and pricing for milk powder, butter and cheese ingredients.
Frequently asked questions
What were the Fonterra annual results for FY26?
Fonterra reported revenue of NZ$27 billion, after-tax profit of NZ$2.6 billion and total operating profit of NZ$3.4 billion, including a NZ$1.2 billion Mainland divestment benefit.
What was the final farmgate milk price?
The final 2025-26 farmgate milk price was NZ$9.69 per kgMS, while organic milk reached NZ$14.13 per kgMS.
How much is the full-year dividend?
The full-year dividend is 73 cents per share, including a final dividend of 33 cents.
Related reading
Source: Riverine Herald | DairyNews7x7. Summarised independently in our own words.
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