The outlook for Fonterra organic remains positive, with strong customer demand helping support record forecast organic milk prices and creating opportunities for future growth. The opening forecast for 2026/27 was $14.00 per kgMS within a range of $13.00-$15.00 per kgMS.
Behind those forecasts is continued demand from customers seeking high-quality New Zealand organic dairy products, backed by the country's pasture-based farming systems and strong reputation in global markets.
New opportunities in the South Island
One of the biggest developments for the programme is approval to expand organic supply into the South Island. The decision follows strong interest from farmers looking to be part of the Co-op's organic offering and opens the door for more South Island farmers to explore organic production. Work is now underway to support farmers through the conversion process, with South Island organic processing expected from the 2028/29 season.
The Co-op is also continuing to seek additional organic milk supply from both North and South Islands.
"We're seeing confidence from both farmers and customers. Expanding into the South Island is an important step in supporting future growth while continuing to meet demand" says Andrew Henderson , GM Organic.
A strong farming community
Growth isn't only being reflected in market demand and milk price forecasts. It's also evident within New Zealand's organic farming community. That was on display at the Co-op's Organic Conference in Taupō in June, where 160 organic farmers came together from across the country to reconnect, share experiences and learn about developments within the sector.
Farmers heard from businesses working within organic systems, gained insights into global market trends and took part in discussions designed to support farmers at different stages of their organic journey.
Highlights included a farmer Q&A panel, a session with an organic dairy customer, US baby food company Little Spoon, and a visit to a Pāmu farm. For many attendees, one of the most valuable parts of the event was the opportunity to connect with fellow organic farmers and learn from their experiences.
