Source: ChildFund New Zealand
Fonterra delivers another strong result for HY26
- Total Group revenue: NZ $13.9 billion, up by NZ $1.3 billion
- Operating profit: NZ $1,231 million, up from NZ $1,107 million
- Profit after tax: NZ $750 million, up from NZ $729 million
- Earnings per share: 45 cents per share, up from 44 cents last year
- Normalised earnings per share: 51 cents per share, up from 47 cents last year
- Continuing Operations return on capital: 11.2% up from 10.4%
- Interim dividend, fully imputed: 24 cents per share
- Special Mainland dividend, fully imputed: 16 cents per share
- Forecast Farmgate Milk Price range: NZ $9.40 - $10.00 per kgMS, with a midpoint of $9.70 per kgMS
- Forecast milk collections: 1,565m kgMS, up 4%
- FY26 full year forecast earnings range for continuing operations: 50-65 cents per share.
Fonterra Co-operative Group Ltd has today released its FY26 interim results, showing continued momentum in its performance with revenue of $13.9 billion in the first half of the financial year.
Fonterra announced an interim dividend of 24 cents per share, fully imputed from continuing operations and confirmed a special Mainland dividend of 16 cents per share, fully imputed, representing 100% of Mainland Group’s FY26 earnings while under Fonterra ownership.
The Co-op has also lifted its forecast Farmgate Milk Price midpoint for the season from $9.50 per kgMS to $9.70 per kgMS, with the range changing from $9.20 – $9.80 per kgMS to $9.40 - $10.00 per kgMS.
Given the strength of these interim results, and our contracted commitments for the second half of the year, we have also adjusted our full year earnings guidance for continuing operations from 45-65 cents per share to 50-65 cents per share.
CEO Miles Hurrell says these changes to the forecast Farmgate Milk Price and earnings reflect improvement in global commodity prices and the Co-op’s strong underlying margins and cost control, but notes that significant volatility remains, particularly as the conflict in the Middle East continues.
“The underlying performance of Fonterra’s continuing business is stable, allowing the Co-op to return all earnings associated with the Mainland Group business and lift our forecasts for the remainder of the year ahead. Demand for our products is strong, and we’re focused on our plan to maximise both the Farmgate Milk Price and earnings,” says Mr Hurrell.
The record date for the two dividend payments will be 30 March, and the payment date will be 14 April. This is also the date Fonterra is targeting for payment of the $2.00 per share capital return from the Mainland Group divestment, based on the transaction completing at the end of March.
Business performance
Total Group reported operating profit increased to $1,231 million from $1,107 million the year prior.
Reported profit after tax is $750 million, equivalent to earnings per share of 45 cents and up on 44 cents last year. When excluding the costs associated with the Consumer divestment, Fonterra’s normalised earnings per share is 51 cents.
The Co-op delivered a Return on Capital of 11.2%, up on this time last year and in line with the target range of 10-12%.
“The first half of the year has been shaped by strong milk flows, with the Co-op collecting record milk volumes in the South Island so far this season. When combined with several adverse weather events, these conditions have put pressure on the operations of all New Zealand milk processors.
“We have been able to navigate through these challenges due to the resilience of our network,” says Mr Hurrell. ”Our performance shows that we are growing the high-value parts of our business through optimal allocation of milk solids across our product mix, which is driving a strong return on capital for shareholders and unit holders.”
Fonterra’s market performance has been strong, with the Ingredients business delivering a return on capital of 11% and Foodservice a return on capital of 12.6%.
These results have been driven by our protein portfolio in the Ingredients channel and improved pricing in Foodservice to successfully recover the lift in butter and cream input costs seen last year.
Mainland Group performance improved during the first half of this year, primarily due to a favourable commodity price cycle.
Progress on strategy
Over the course of FY26, Fonterra has made significant progress on the divestment of its global consumer and associated businesses, Mainland Group, to Lactalis for $4.22 billion. The transaction is unconditional and expected to complete at the end of March 2026.
“Our focus now is firmly on our strategy to grow value for farmers as a global B2B dairy nutrition provider, working closely with customers through our high-performing Ingredients and Foodservice channels.
“The foundation of our Co-op is our New Zealand milk supply. Fonterra has made it easier for new farmer suppliers to join the Co-op and share up over time through changes to our shareholding requirements, with greater flexibility in the level of investment required.
“We are focused on maximising value from farmers’ milk and are building new manufacturing capacity across several New Zealand sites to help meet growing demand for our high-value proteins, butters and creams,” says Mr Hurrell.
Projects underway include:
Studholme – construction of the new advanced protein hub is now complete, with first trial products off the line in February 2026.
Clandeboye - commenced build of our butter plant expansion in January 2026, with product expected off the line in April 2027.
Edendale – construction underway of new UHT cream plant and remains on track for first products to come off the line in late 2026.
Edgecumbe – today announcing a $35 million investment in expanding our pastry butter sheet line, to support continued demand through Foodservice for butter products. Site works began in March 2026, with product off the line expected in April 2027.
In addition, the Co-op's decarbonisation programme continues across key sites at Whareroa, Edgecumbe, Waitoa, and Edendale to help secure energy supply, reduce emissions, and support future processing growth.
Underpinning our business operations is the Co-op's Enterprise Resource Planning system1 implementation, which has been deployed successfully at our first three locations. The five-year programme remains on track and on budget and is expected to wrap up in late 2028 with spend peaking across FY26 and FY27.
Outlook
Looking ahead, the conflict in the Middle East is having an impact on our supply chain and has the potential to increase Fonterra’s inventory levels and costs over the course of the second half of the year. There’s also the potential for further volatility in global commodity prices.
“The conflict is a complex and dynamic situation that is changing daily, but we are confident that we’re on the right track to get product to customers.
“Our business is designed to manage volatility. Our scale and strong relationships with customers and logistics provider Kotahi will help us to navigate through these challenges better than most. With this in mind, we remain focused on delivering on our strategic targets,” says Mr Hurrell.
1 An IT and digital transformation project to replace the Co-op’s ERP software, to help future-proof the Co-op's critical processes and systems and reduce cash costs over time.
About Fonterra
Fonterra is a co-operative owned and supplied by thousands of farming families across Aotearoa New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers and employees share the goodness of our milk through innovative consumer, foodservice and ingredients brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. We are passionate about supporting our communities by Doing Good Together.
PSA – What is the Govt. hiding? MPI blocks key info on meat inspection privatisation
Source: PSA
Overseas merchandise trade: February 2026 – Stats NZ information release
Health and Alcohol – Ki Tua o Matariki: Alcohol Law Changes Risk Pushing Harm Further Into Everyday Life
Source: Ki tua o Matariki
Recognition – Safeguarding Children wins New Zealand Community of the Year 2026
A nationwide movement that has trained more than 93,000 advocates to recognise and respond early to signs of child abuse has been awarded the Mitre 10 New Zealand Community of the Year 2026.
Safeguarding Children CEO Willow Duffy accepted the award at the Kiwibank New Zealander of the Year Awards ceremony, reflecting on how the initiative has grown to have far-reaching impact around Aotearoa after starting “as an idea over a cup of coffee with three nurses and a detective.”
“Recognising that the rates of child abuse in New Zealand was one of the biggest public health issues, we put this idea together that we could inspire people to speak up for children, do the best for them and take steps to protect our tamariki not just in their homes but in their communities and places children go,” Duffy said.
Duffy said what continues to motivate her are the harrowing stories of child abuse, such as those from The Abuse in Care, Royal Commission of Inquiry, and firsthand accounts where the opportunities for adults to step in and prevent abuse are strikingly apparent, yet not taken.
“Protecting our precious taonga, our nation’s tamariki, is everyone’s responsibility. Safeguarding Children will continue to advocate for better safeguards to prevent abuse in New Zealand, as well as equip people with the knowledge and tools to step in and do the right thing.”
Duffy said she is humbled by the recognition the award brings. “The team behind the initiative make me so proud every day. We are supported by an incredible voluntary board who work so hard to give their time and make it happen, and sponsors who donate so we can do this work.
“Thank you, from the bottom of my heart.”
Duffy said she hopes the recognition will help draw further attention to New Zealand’s shocking record of child abuse and support calls for change. “It requires a collective response from all levels to prevent abuse and create change for our vulnerable tamariki. Our work is far from done.”
About Safeguarding Children:
Safeguarding Children’s vision is for the children and young people of Aotearoa New Zealand to be safe from abuse and neglect.
Safeguarding Children is a registered charity and a leading provider of safeguarding and child protection education and guidance in New Zealand. It has trained over 50,000 New Zealanders on how to implement prevention measures within their organisations, work with vulnerable families and children, and recognise and respond to child abuse and neglect. Safeguarding Children believes a proactive, preventative approach produces the best outcomes for children, organisations and staff. It offers a range of services to suit the needs of any individual or organisation that works with children and young people.
Statement – Home support workers must be front of queue for fuel fix Nicola Willis – PSA
Source: PSA
Arts – NZSA Mentorships 2026 announced!
We are pleased to announce the 13 emerging writers who have been selected for The New Zealand Society of Authors Te Puni Kaituhi O Aotearoa 2026 Mentorship Programme.
The Judging panel of Dr Paula Morris (convenor), Cassie Hart and Philippa Werrycommented: 'We were impressed with the number of applications and the range of projects they represented – including historical, crime and speculative fiction, children’s and young adult fiction, multi-genre works, poetry collections and memoirs. Many of our writers are working on books with much potential, and it was difficult to narrow the list to just 13 mentorships.
We encourage applicants who were unsuccessful this time to keep working on their craft, and to take advantage of all the resources the NZSA offers.'
The 2026 mentees are emerging writers with unique voices and we congratulate: Vivienne Bailey (Paraparaumu), Cassandra Barnett (Waikato), Angela Barnett (Tāmaki Makaurau | Auckland), Catherine Bennett (Tāmaki Makaurau | Auckland), Michelle Cheever (Upper Moutere), Marcus Hobson (Aongatete), Margaret-Mary Hollins (Tāmaki Makaurau | Auckland), Annelies Judson (Tāmaki Makaurau | Auckland). Philip Luke (Te Awa Kairangi ki Uta | Upper Hutt), Jemma Richardson ((Te Whanganui-a-Tara | Wellington), Lisa Stanley (Tāmaki Makaurau | Auckland), Kirsteen Ure (Tāmaki Makaurau | Auckland), and Kirsty Wadsworth (Ngāmotu | New Plymouth).
The writers will spend the rest of 2026 refining their skills and working on their craft under the mentorship of some of New Zealand’s finest professional writers. Each mentee will be matched with an experienced writer for their mentorship, selected from a curated list of industry mentors. Find out more about the NZSA Mentor Programme: https://authors.us5.list-manage.com/track/click?u=905a5275ec5c023659502ec21&id=d26a2d9964&e=466373ae7c
The NZSA Mentorship programme is offered every year by the NZSA to foster and develop emerging writers to hone their craft with the support of established practitioners. The NZSA has run its highly successful mentoring programme for writers since 1999. The NZSA Mentor programme is made possible with funding from Creative New Zealand.
Economy – RBNZ Advisory: Expanded April Monetary Policy Review and change to focus of Business NZ speech
20 March 2026 – The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) is expanding its communications approach for the 8 April Monetary Policy Review.
The April Monetary Policy Review decision will be released as usual on the RBNZ website at 2pm. We will hold an online media conference at 3pm, which will also be livestreamed on our website. Governor Breman will be undertaking media engagements in the days following the announcement. (ref. https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=1454659f0e&e=f3c68946f8 )
This approach aligns with the Monetary Policy Committee's (MPC) commitment to greater transparency. Future Monetary Policy Reviews will also follow this revised format. We will review and adapt this format over time in response to stakeholder feedback.
The RBNZ's quarterly Monetary Policy Statement, which includes updated economic forecasts, an Official Cash Rate projection and more detailed forecasts will continue as normal. Monetary Policy Statement releases will also continue to be followed by in-person media conferences. The next quarterly Monetary Policy Statement is scheduled for release on 27 May.
Change of focus for Business NZ speech
On Tuesday 24 March, Governor Breman is scheduled to deliver a keynote speech to Business NZ's CEO Forum in Auckland. The RBNZ previously advised that the speech would touch on the current economic outlook, drawing on insights from the February Monetary Policy Statement, and outline how the Reserve Bank is working to modernise New Zealand's payments system.
Due to the wider economic impact of the ongoing conflict in the Middle East, this speech will now focus on the potential impacts of this evolving situation on the New Zealand economy.
The speech will be published on the RBNZ website at 9am on Tuesday 24 March ahead of two planned external engagement events with Governor Breman that morning. The first engagement is with external economists and analysts, and the second is with Auckland media representatives. The Business NZ CEO Forum event that Governor Breman is speaking at will commence from 2pm. The RBNZ is releasing the speech earlier in the day to ensure that all stakeholders have equitable access to information.
A speech outlining how the Reserve Bank is working to modernise New Zealand's payments system will be delivered at a later date.
This speech will not pre-empt the MPC's April Monetary Policy Review decision. The global environment, and other salient factors, will be discussed in full by the MPC when it meets ahead of its April decision.
More information
Event advisory: Business NZ CEO Forum: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=cebad07a06&e=f3c68946f8
Appointments – CAA appoints new Chief Financial Officer
After a thorough recruitment process, the Civil Aviation Authority (CAA) is pleased to announce the appointment of Brett Banner as Chief Financial Officer to its Executive Leadership Team.
Brett is an experienced public sector finance leader and Chartered Accountant with more than 20 years’ experience across corporate services, including finance and governance, risk, procurement and ICT.
He is currently General Manager Corporate Services at the Energy Efficiency and Conservation Authority (EECA), and has previously held Chief Financial Officer roles at the Commerce Commission and the Ministry for Culture and Heritage.
Brett also serves on the Board of NZ On Air, where he chairs the Audit and Risk Committee.
CAA Chief Executive and Director of Civil Aviation Kane Patena says Brett brings strong leadership and experience at a time of continued organisational focus on performance, value, and delivery.
“Brett brings a depth of experience across government and Crown entities, and a strong track record leading organisational change and lifting capability,” says Mr Patena.
“He has led major programmes, strengthened business planning and risk management practices, and supported organisations to align to strategic priorities. His experience and approach will support CAA as we continue to deliver on our role as a modern, effective regulator.”
Brett will join CAA on 25 May 2026.
