Fonterra warns El Nino risks could impact milk supply
New Zealand dairy giant Fonterra warned that El Nino could affect milk volume growth. The company posted a sharply higher annual profit driven by strong protein demand and asset sales.
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FONTERRA COOPERATIVE GROUP warned on Thursday that El Niño could constrain milk volume growth heading into the 2026/27 season, guiding fiscal 2027 underlying EPS to between 65 New Zealand cents and 85 New Zealand cents. The warning comes as the weather phenomenon threatens global crop output and heightens the risk of extreme weather events into 2027. Investors face potential headwinds as reduced milk production limits the amount of product available to process and sell.
