The Co-op expanded its price risk management programme last June, giving farmers a broader set of options to manage Milk Price risk. These included the opportunity to lock in a Minimum Milk Price or a Milk Price Range for the current season or secure a Fixed Milk Price for an additional season (i.e. 2027/28).
The new services complement the original Fixed Milk Price first launched in the 2019/20 season and give farmers more ways to gain certainty over a portion of their milk revenue, says Fonterra’s Milk Supply Director, Lisa Payne.
“Global dairy markets are volatile, so tools that provide certainty, flexibility and protection are increasingly sought after,” Lisa says.
Accessible across all regions and farm types
Around 20% of Fonterra farmers use some form of price risk management each season.
During the 2025/26 season, 114 million kgMS were applied for across the four price risk management services.
Participation has been seen across every region and across a variety of farm sizes and ownership structures, highlighting the universal value of price certainty.
While Fixed Milk Price remains the most popular service, interest in the Milk Price Range introduced for the 2025/26 season has been growing as farmers look to balance certainty with added flexibility in their businesses.
Industry-leading support
Fonterra’s Price Risk Management Tools remain unique in the industry, reinforcing the Co-op’s focus on farmer-driven solutions, Lisa says.
“These services are designed to help farmers proactively navigate milk price volatility, make confident investment decisions, and farm with greater financial certainty,” she says.
“As global dairy markets continue to experience price swings, simple, flexible and effective risk management tools are essential for building resilience and confidence at the farm gate.”
Fonterra’s Price Risk Management services
Fixed Milk Price
Fixed Milk Price allows farmers to secure a price for a specific portion of their milk supply. This means they receive the agreed-upon price, regardless of how the market fluctuates – less fees and all usual adjustments, premiums and deductions.
Fixed Milk Price Additional Season
Fixed Milk Price Additional Season enables farmers to secure a price for a specific portion of the next season's milk supply, allowing for longer-term financial planning.
Minimum Milk Price
Minimum Milk Price helps protect farmers’ income by securing a price floor for a portion of their milk supply. If the final Farmgate Milk Price drops below this level, farmers still receive the Minimum Milk Price less fees and all usual adjustments, premiums and deductions. If the Farmgate Milk Price climbs higher, farmers also capture that upside.
Milk Price Range
Milk Price Range offers a balanced approach where farmers can secure a price floor (minimum) and a price cap (maximum) for a portion of their milk supply, creating a price band for more income control and predictability.
For more information on how these services could work for your farm, contact your local Fonterra representative or visit the Farm Source website.
