The Commerce Commission carries out a Statutory Review of both the Milk Price Manual and the Milk Price Calculation annually.
For more information about the review process and for copies of the Commerce Commission’s reports, go to the Commerce Commission's website.
How the Farmgate Milk Price is calculated
- Deducting costs, including the cost of transporting raw milk to factories, and the cost of efficiently manufacturing Reference Commodity Products and then transporting them to the point of export from New Zealand, along with selling and administration expenses. They also include an amount for depreciation of fixed assets and an appropriate return on investment, including investment in working capital.
- To the extent feasible and where doing so is consistent with the Farmgate Milk Price Principles, costs are derived from Fonterra’s actual costs associated with these activities. The balance comprises the aggregate amount payable to farmer shareholders. This is an aggregate amount but is usually referred to on the basis of a Farmgate Milk Price per kgMS.
- The Farmgate Milk Price methodology has been reviewed by competition experts Compass Lexecon, as described in the media release International Experts Endorse Fonterra Milk Price Formula.
- Determining the revenue that Fonterra would earn if the equivalent of all the milk Fonterra collects was converted into commodity specifications of whole milk powder (WMP) and skim milk powder (SMP), and their by-products which are buttermilk powder (BMP), butter and anhydrous milkfat (AMF). These are the products that currently make up the ‘Reference Commodity Products’. Prices largely reflect US dollar prices achieved on the twice-monthly GlobalDairyTrade (GDT) trading events, converted to New Zealand dollars using Fonterra’s actual average monthly foreign exchange conversion rate.
Milk Price Statements
Fonterra’s Farmgate Milk Price statement 2024
Spreadsheet
Version of 2023/2024 Milk Price Model
Fonterra’s Farmgate Milk Price statement 2023
SPREADSHEET
Version of 2022/23 Milk Price Model
Fonterra’s Farmgate Milk Price statement 2022
SPREADSHEET
Version of 2021/22 Milk Price Model
E-READER
Fonterra’s Farmgate Milk Price statement 2021
SPREADSHEET
Version of 2020/21 Milk Price Model
E-READER
Fonterra’s Farmgate Milk Price statement 2020
SPREADSHEET
Version of 2019/20 Milk Price Model
SPREADSHEET
Version of 2018/19 Milk Price Model
E-READER
Fonterra's Farmgate Milk Price statement 2019
SPREADSHEET
Version of 2017/18 Milk Price Model
E-READER
Fonterra's Farmgate Milk Price statement 2018
E-READER
Fonterra's Farmgate Milk Price statement 2017
SPREADSHEET
Version of 2016/17 Milk Price model
E-READER
Fonterra's Farmgate Milk Price statement 2016
SPREADSHEET
Version of 2015/16 Milk Price model
E-READER
Fonterra's Farmgate Milk Price statement 2015
SPREADSHEET
Version of the 2014/15 Milk Price model
Fonterra's Farmgate Milk Price statement 2014
Fonterra's Farmgate Milk Price statement 2013
Fonterra's Farmgate Milk Price statement 2012
Milk Price Manuals
Fonterra's Farmgate Milk Price manual 2024/25
Fonterra's Farmgate Milk Price manual 2023/24
Fonterra's Farmgate Milk Price manual 2022/23
Fonterra's Farmgate Milk Price manual 2021/22
Fonterra's Farmgate Milk Price manual 2020/21
Fonterra's Farmgate Milk Price manual 2019/20
Fonterra's Farmgate Milk Price manual 2018/19
Fonterra's Farmgate Milk Price manual 2017/18
Fonterra's Farmgate Milk Price manual 2016/17
Fonterra's Farmgate Milk Price manual 2015/16
Fonterra's Farmgate Milk Price manual 2014/15
Fonterra's Farmgate Milk Price manual 2013/14
Other Milk Price Documents
Milk Price Panel Terms of Reference 2024
Compass Lexecon Milk Pricing review, 20 July 2011
Industry Regulations
The Dairy Industry Restructuring Act 2001 (DIRA) enabled the creation of Fonterra in 2001.