Skim milk powder - Fonterra’s second-biggest reference product – dipped 1.6%, to an average of US$2559/MT.
Cheddar fell 1.9%, to an average of US$4758/MT, and butter was down 0.8% to an average of US$6662/MT.
The biggest percentage fall came from mozzarella, which dropped 5.3% to an average of US$3230/MT.
On the positive side, anhydrous milk fat was up 1.5% to an average of US$7038/MT.
Butter milk powder was not available at this event.
A total of 40,621 MT of product was purchased by 117 successful bidders, compared to 42,013 MT and 125 winning bidders last time.
The results weren’t out when Fonterra’s chief executive, Miles Hurrell, spoke to The Country’s Jamie Mackay today, but he wasn’t far off the mark.
Hurrell predicted results would be “down a couple of per cent or thereabouts”.
While this was “not ideal” from a New Zealand perspective, Hurrell said it wasn’t unexpected.
“What we sense is that it was in line, pretty much, with the futures market.”
Listen below:
Mackay asked if Fonterra’s $10.00 per kgMS forecast for the current 2025/26 season was under threat.
Hurrell said Fonterra was mindful of international markets and geopolitics, such as China halting its buying of US soybean crops.
“[As a result] there’s a lot more feed floating around the market, which leads to a bit more milk, of course.”
Hurrell said there was also good weather in Europe, and New Zealand was at peak production.
“All of those things would suggest a bit more milk, and buyers smell a bit of blood, and they want to sit on the sidelines.
“So, at this point, I’m not suggesting $10 is under threat, but we certainly need to keep an eye on it.”
On September 25, Fonterra confirmed its final Farmgate Milk Price for the 2024/25 season at $10.16 per kgMS.
It also narrowed its 2025/26 forecast Farmgate Milk Price to between NZ$9.00-$11.00 per kgMS, with a midpoint of $10.00 per kgMS.
