Fonterra has lowered its 2026/27 milk price forecast amid declining prices at recent Global Dairy Trade (GDT) auctions.The co-op said the revised new season farmgate milk price forecast was $9.25/kg of milk solids, with a new range of $8-$10.50/kg.It was down from the opening forecast of $9.75/kg announced in May, with a wide range of $8-$11/kg.The 2025/26 forecast of $9.60-$9.80/kg, with a mid-point of $9.70, remains unchanged.Fonterra chief executive Richard Allen said the change for the new season reflected softer-than-expected demand amid strong supply."GDT prices have fallen 11 percent across the reference products that inform the farmgate milk price since we announced the opening forecast in late May, while milk production from key exporting regions is up on last year.".The most recent GDT auction saw the price index fall 4.9 percent, with wholemilk powder down 4.4 percent."We're expecting a strong start to the season in New Zealand, noting the potential for the El Niño weather pattern to impact global supply as the season progresses," Allen said.He noted it was still "very early days".Allen said the co-op continued to focus on maximising returns for farmer shareholders."As the seasonal supply picks up, our plan will ensure we utilise our flexible operations footprint, strong customer relationships and robust supply chain to shift milk into the products and markets where we can get the best returns for our farmers' milk."