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Fonterra delivers another strong result for HY26

Source: Fonterra

  • 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.

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PSA – What is the Govt. hiding? MPI blocks key info on meat inspection privatisation

Source: PSA

MPI officials make flying visit to USA to reassure key export market
The PSA is calling on the Ministry for Primary Industries to lift the veil of secrecy on its controversial plans to privatise meat inspection services.
MPI has refused to release to the PSA under the Official Information Act the detailed analysis it carried out to justify its plan to allow meat companies to inspect their own export meat. This is currently an independent and effective service provided by government agency AsureQuality that has safeguarded the quality of our $12b/year meat export industry.
“The Ministry for Primary Industries took three months to respond to the OIA and then only because the Ombudsman intervened and still withheld the key analysis underpinning its controversial plan to privatise meat inspection,” said Public Service Association Te Pūkenga Here Tikanga Mahi National Secretary Fleur Fitzsimons.
The PSA is the union for meat inspectors employed by AsureQuality. Hundreds of meat inspectors could face the axe under this plan, with many forced to transfer to the private sector with lower wages and poorer conditions.
“This is appalling behaviour by a public sector agency which has an obligation to be transparent and explain its policies – what has it got to hide? The case for change has not been made.
“Hundreds of meat workers need to know why their futures are being upended, and the public has a right to know why the Government is playing fast and loose with our hard-won reputation for quality and safe export meat.”
The PSA requested all advice MPI has prepared on the proposal. The response only landed after the consultation closed preventing the PSA from making a fully informed view of the plan.
Only one internal memo was released, and a key document, the analysis of the proposal, Ante and postmortem project analysis was withheld in full because it ‘would prejudice the security or defence of New Zealand or the international relations of the Government of New Zealand’. Another five were withheld, four of these including even their titles, under the same grounds.
“This is extreme – surely sensitive issues around international relations could have been redacted. But this is par for the course from MPI which has consistently withheld information or limited the scope of requests from the PSA over the past year. Workers and the New Zealand public deserve better.
“We asked for this information because what MPI provided to the public as part of its consultation process was completely inadequate and provided no information about why they believe the proposal is an improvement on the status quo or what evidence that belief is based on. Throughout this entire process we’ve continued to ask for information about the analysis and advice underpinning their decisions and been provided with very little.”
This obfuscation comes as MPI officials make a flying visit to meet counterparts at the United States Department of Agriculture to convince them there are no risks to food safety. This is happening just weeks before final decisions on the plan are due to be made.
“Why the late dash to America? Surely any issues the Americans may raise should have been sorted well before the proposal was even hatched and consulted on. It just smacks of poor planning, but how do we know when MPI has shrouded this in secrecy?
“MPI must do better when the livelihoods of hundreds of AsureQuality meat inspectors and our meat export industry are at stake.
“The PSA calls on Food Safety Minister Andrew Hoggard to tell MPI to release all relevant information now, before final decisions are made in April.”
ENDS
Attached: Response letter from MPI re OIA document request
Previous statements
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Overseas merchandise trade: February 2026 – Stats NZ information release

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Health and Alcohol – Ki Tua o Matariki: Alcohol Law Changes Risk Pushing Harm Further Into Everyday Life

Source: Ki tua o Matariki

Alcohol Law Changes Risk Pushing Harm Further Into Everyday Life
Ki Tua o Matariki (KToM) is warning that proposed changes to alcohol laws could increase harm for whānau Māori by making alcohol more visible, more accessible, and more normalised in everyday spaces.
The Government has announced reforms aimed at reducing barriers for businesses, including limiting who can object to alcohol licences, allowing wineries, breweries and distilleries to hold both on- and off-licences, and enabling places like barbers and hairdressers to serve alcohol.
KToM CEO Zoe Witika-Hawke says the changes risk shifting alcohol further into daily life at a time when many whānau are already under pressure.
“These changes might seem small on their own, but together they make alcohol more present in our everyday environments- and that matters,” says Witika-Hawke. We know alcohol outlets are more concentrated in lower-income communities, while access to health support is often more limited. “That imbalance matters- because it shapes the environments our whānau are living in every day.”
“Alcohol harm is not just about individual choice. It’s shaped by how available it is, where it shows up, and what becomes normal.”
Whānau Already Carrying the Load
The reforms come as many whānau face increasing financial pressure, with petrol prices in Tāmaki Makaurau now sitting above $3 per litre, alongside rising costs of food, rent, and power.
“Our whānau are already making tough choices every day- between fuel, kai, and keeping the lights on,” says Witika-Hawke. “At a time like this, increasing access to alcohol raises real questions about priorities.”
Community Voice at Risk
One of the most significant changes would restrict who can object to alcohol licence applications. KToM says this risks weakening community voice- particularly for Māori communities whose boundaries and realities do not align with territorial authority lines.
“Our communities know what harm looks like where they live,” says Witika-Hawke. Liquor stores
“Reducing their ability to speak into these decisions removes an important layer of protection.”
FASD and Intergenerational Impact
KToM is also highlighting the ongoing impact of Fetal Alcohol Spectrum Disorder (FASD), with estimates suggesting 1,800 to 3,000 babies every year may be affected. That’s roughly 8 babies per day.
FASD is lifelong and preventable and disproportionately impacts tamariki Māori.
“Every increase in alcohol availability increases risk- particularly for māmā hapū navigating stress and systemic barriers,” says Witika-Hawke.
“We need to be clear- this is not about blaming māmā. Stigma has never prevented harm. Safe environments and strong support systems do.”
A Wider Direction of Travel
KToM says the proposed changes sit within a broader shift away from prevention-focused policy.
“We’ve seen smokefree protections rolled back, and now alcohol access expanded,” says Witika-Hawke.
“Taken together, these decisions shape the conditions our whānau are living in.”
Alcohol harm is already estimated to cost Aotearoa $9.1 billion annually, placing pressure on communities and an already stretched health system.
Calling for Balance
KToM acknowledges the importance of economic growth but says it must not come at the expense of whānau wellbeing.
“We are not anti-business- we are pro-whānau,” says Witika-Hawke.
“If we want safer communities and healthier futures, alcohol policy must prioritise prevention, not increased exposure.”
Looking Ahead
Ki Tua o Matariki is calling for a balanced approach that protects community voice, strengthens prevention, and invests in whānau wellbeing.
“Our whānau are already carrying enough,” says Witika-Hawke.
“Policy should reduce harm- not make it easier to access.” 
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Recognition – Safeguarding Children wins New Zealand Community of the Year 2026

Source: Safeguarding Children

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. 

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Statement – Home support workers must be front of queue for fuel fix Nicola Willis – PSA

Source: PSA

The PSA is urging the Finance Minister to make 23,000 home support workers a priority when delivering urgent support to low income workers hit by sharply rising petrol prices.
Nicola Willis told media today she wants a ‘very targeted and temporary’ fix for those ‘acutely impacted’, adding she doesn’t want to see a situation where ‘people can’t drive to work.’
“We agree with Nicola Willis – and home support workers should be at the front of the queue – and right now there’s a fast, ready fix available that could be done today by raising their mileage allowance,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
The Finance Minister is seeking advice from Inland Revenue and Treasury about using the tax and transfer system to deliver support – tax credits under Working for Families or the Independent Earner Tax Credit. But neither may help many home support workers.
“These workers drive their own cars between clients every day, and are the only publicly funded workers required to do so with such a miserable mileage reimbursement. They have no choice but to drive and rising petrol prices are hitting them directly in the pocket with every shift.
“But there’s a simple, fast fix right now for these essential workers. The Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016 requires Health NZ Te Whatu Ora to pay a mileage rate to these workers. The Health Minister can direct that rate to be lifted immediately, no complicated fiddling with the tax and transfer system required, no delay, just fast, real help.”
The allowance was last adjusted four years ago so should be being reviewed right now.
Fleur Fitzsimons said: “These are low-paid, predominantly female workers providing critical care to elderly and disabled New Zealanders. If the Government is serious about protecting working people from the fuel crisis, it can today deliver the support they need right now.
“The PSA urges the Government to do the right thing by these workers, today. They can’t afford to wait.”
Previous statement
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Arts – NZSA Mentorships 2026 announced!

Source: NZSA

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.
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Economy – RBNZ Advisory: Expanded April Monetary Policy Review and change to focus of Business NZ speech

Source: Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ)

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

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Appointments – CAA appoints new Chief Financial Officer

Source: Civil Aviation Authority (CAA)

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.

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Save the Children – Conflict drives Eid food price surge across Middle East and wider region, leaving families struggling to cope

Source: Save the Children

Food prices have surged in some of the most food-insecure countries in the Middle East and wider region due to the ongoing conflict, threatening to push the most vulnerable families further into hunger as Eid approaches, Save the Children said.
Families already struggling after years of conflict and economic shocks have told Save the Children staff that rising food and fuel costs – compounded by war and displacement – are stripping away the joy of Eid al-Fitr, the celebration marking the end of Ramadan. Eid this year for many families will be a time of fear and hunger with more than 4 million people newly displaced mostly in Iran and Lebanon.[1]
While food prices generally tend to rise around Eid, the conflict has driven fuel and food prices higher than usual, pushing already vulnerable families closer to the brink while forcing many others to forgo Eid traditions such as buying new clothes for the celebrations, decorating homes or sharing sweets and chocolates.
Even before the conflict, about one in six people in the Middle East region did not know where their next meal would come from and had to sacrifice the quality of their food because of financial constraints. [2] In Lebanon supply chain disruptions and uncertainty in local markets have further driven up prices. Save the Children's analysis of the cost of fuel and six key foods for a healthy diet found prices rose by 5% between 23 February and 9 March.[3]
One million people – or 20% of the population – have been displaced in Lebanon since the escalation started on 2 March. [4] Families living in collective shelters will miss out on food traditionally eaten by their families to mark Eid, while others staying outside shelters are prioritising spending on essentials due to ongoing uncertainty, Save the Children staff reported. 
Iran’s suspension of food and agricultural exports has had a significant impact on Afghanistan where about 9 million children – or one in three – are facing severe hunger. [5] Iran accounts for 30% of Afghanistan’s imports, including key goods such as food and fuel.[6] Prices of some vegetables and cooking oil have surged 13% in the past month, while staples are up 3%, according to Save the Children price’s monitoring. [7]
Fruit sellers in Herat, close to the Iran border, said the price of dried fruit – traditionally bought for Eid – has risen sharply. Families are replacing more expensive items used in Eid dishes with cheaper alternatives such as chickpeas, raisins, and pumpkin seeds.
In Iran, the UN has reported that preexisting economic pressures such as economic stagnation, high food inflation, and rapid currency depreciation which were already driving food insecurity prior to the current conflict, is leaving households with limited capacity to absorb further shocks.
The Government of Israel’s closure of the Rafah border on the second day of the conflict- which still remains closed to the entry of humanitarian goods and supplies – contributed to spiking prices in Gaza, compounding the inflationary effects of two years of war. Some fruits and vegetables have disappeared or become scarce in markets. The cost of peppers, potatoes, and onions more than tripled in less than two weeks while the prices of eggs and meat have also risen, putting children’s nutrition and development at risk.[8]
The UN has warned that if the conflict continues, elevated prices could push an additional 45 million people into acute hunger, up from 318 million, to an all-time record-high.[9] 
The effects could be felt in sub-Saharan Africa which is heading into planting season and relies on fertiliser shipped through the Strait of Hormuz – conduit for 40% of world fertilizer.
Ahmad Alhendawi, Save the Children’s regional director for the Middle East and eastern Europe said:
“Eid, traditionally a time of celebration and community, will be disquietingly unfamiliar for many children across the Middle East and wider region as the human and economic cost of the conflict unfolds.
“Children have been killed, displaced, and prices of everyday essentials such as food are rising. For children in Gaza and elsewhere, who have already endured unimaginable horrors during what is supposed to be one of the most joyful times of the year, this Eid looks to bring little respite.
“These price hikes are hitting children and families across the region whose safety, security and incomes have in many cases been battered by years of conflict and economic crises. It’s not difficult to imagine how even the smallest cost increase is a blow to these families who are already on the brink and exhausted by conflict and crises.
“It is another stark reminder of how conflict upends the life of children, inflicting new wounds on a generation of children across the Middle East and wider region, many of whom already carry the physical and mental scars of years of violence, insecurity, or deprivation.”
Save the Children is urgently calling for an immediate cessation of hostilities. All parties to the conflict must adhere to their obligations under international humanitarian law, including by facilitating the unimpeded passage of humanitarian supplies, fertiliser, and food through the Strait of Hormuz.
[3] Based on prices for rice, flour, red lentils, sunflower oil, eggs and tomatoes as reported in the Lebanon Ministry of Economy and Trade mini-basket of prices on 23 February and 9 March 2026. Fuel prices taken from IPT.
[7] Save the Children market price monitoring in Afghanistan
[8] Save the Children market price monitoring in Gaza. Prices collected on 23 and 28 February and 8 February.