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What the milk price means for your farm: milk income for the season from your kg milksolids, the low and high end of the forecast, what every 10 cents is worth and how much is left after costs.

Rotorua, Bay of Plenty · Whakaahua: AnnWoolliams, CC BY-SA 4.0

1. The herd

The national average was 414 kgMS a cow in 2024/25. Your total kgMS for last season is on your milk statements - if you enter it, it is used instead of cows × kgMS a cow.

2. Milk price

Fonterra forecast Farmgate Milk Price for 2026/27: $8.50 – $10.50/kgMS, midpoint $9.50 (announced 21/09/2026). Supply another company? Use its price.

3. Your costs (optional)

Use your own figure from your accountant or farm advisor - what counts as a cost (wages, interest, depreciation, drawings) changes the answer a lot.

Showing an example herd (TEST numbers, not a real farm) at Fonterra's forecast - replace it with your own.

Your milk income

Milk income at $9.50/kgMS$1,651,860173,880 kgMS · $3,933 a cow · $11,012 a hectare · before costs
If the price ends up$1,477,980 – $1,825,740at $8.50 to $10.50/kgMS
Every 10c/kgMS change$17,388more or less milk income for the season
Production414 kgMS a cow · 1,159 kgMS a hectarelevel with the national 414 kgMS a cow (2024/25)
Milk income at other prices (173,880 kgMS)
Milk priceMilk incomeA cow
$8.50$1,477,980$3,519
$8.75$1,521,450$3,623
$9.00$1,564,920$3,726
$9.25$1,608,390$3,830
$9.50 your price$1,651,860$3,933
$9.75$1,695,330$4,037
$10.00$1,738,800$4,140
$10.25$1,782,270$4,244
$10.50$1,825,740$4,347

Add your cost of production in $/kgMS to see what is left after costs and your breakeven milk price.

How it is worked out

  • Milksolids = cows milked × kg milksolids (fat + protein) a cow, or the total you enter. 420 cows at 414 kgMS is 173,880 kgMS.
  • Milk income = kgMS × milk price. 173,880 kgMS at $9.50 is $1,651,860 - and every 10c on the price is $17,388.
  • After costs = kgMS × (milk price − your cost per kgMS). Your breakeven milk price is the cost per kgMS you enter.

A planning tool, not financial advice. The farmgate milk price is set by each milk company; Fonterra's is a forecast until the season ends, and it is paid through monthly advance payments during the season, so cash in the bank arrives later than the income shown here. Dividends, levies and any premiums or deductions are not included. Talk to your accountant, bank or farm advisor before making decisions. Sources: Fonterra, 21/09/2026; New Zealand Dairy Statistics 2024/25 (LIC and DairyNZ, 27/11/2025). Nothing you type is stored or sent anywhere. Feeding the herd? Try the pasture cover and feed wedge, feed cost comparer and stock water calculator.

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