Thursday, 16 February 2017 09:55

Fonterra lifts Aussie milk price

Written by 
René Dedoncker. René Dedoncker.

Fonterra says improving global dairy prices and a revamp of its operations have enabled a rise in the farmgate milk price to Australian suppliers.

Fonterra Australia last month increased its Australian average farmgate milk price to A$5.20/kgMS, bringing it in line with the forecast closing price for the 2016-17 season.

Individual suppliers’ milk prices will vary between Fonterra’s supply regions depending on the individual farm’s milk profile, regional production factors, milk quality and farm management systems.

Fonterra Australia managing director René Dedoncker says this revised price reflects improvement in the global commodity markets and progress on key initiatives for the Australian business.

“Production has fallen in the major exporting regions, particularly Europe and New Zealand, and we’ve seen a significant decline in Australian milk supply.

“This has helped to rebalance global supply, while demand has remained firm. As a result there has been a steady improvement in global dairy commodity prices and this is reflected in our farmgate price.

“Our strategy continues to progress, helping us to rebalance our product mix into products generating those higher returns, which we’re able to deliver back to farmers at the farmgate,” says Dedoncker.

Over the past six months Fonterra has achieved a number of key initiatives:

Strong growth in the ingredients business, with almost 1000 containers of cheese, whey and nutritionals exported to key global customers in December and January

The construction of the multi-million dollar Stanhope cheese plant and expansion of the Cobden coolroom are also going well: Stanhope is on track for completion in mid-2017, and the Cobden coolroom is ready for growth in Western Star from April

The Beingmate joint venture at Darnum is under way, and the first product made under the JV is now in production, destined for China.

“The progress we’ve made on our strategy, coupled with improvements in the global dairy market, has enabled us to raise payments to our farmers,” he says.

 

More like this

Emissions down 20% in 27 years

New Zealand dairy farming has reduced greenhouse gas emissions by 20% since 1990, measured as carbon dioxide equivalent per kilogram of milk solids produced.

GDT lift raises hope for payout

There's scope for a small lift this season in Fonterra’s farmgate milk price after the GDT Event price index rose 3.1% last week, says BNZ senior economist Doug Steel.

Dramatic 12-hour push saves cows

Fonterra Director and Edgecumbe farmer Donna Smit was at a Dairy Women’s Network meeting in Auckland on April 6 when she heard of the state of emergency back home.

 
 

Milking It

Taking it easy

Cows in Germany are being given three-month maternity leave to take care of their offspring.

A cow of an idea

GDP per capita in Zimbabwe (in constant dollars) is about where it was in 1960, and markedly lower than it…

 

» Connect with Dairy News

 
 

Markets

South Island wool sale eases

South Island wool sale eases

The 4700 bales on offer saw a 74% clearance with mixed results, however all prices paid locally are still above…

Wool continues to ease

Wool continues to ease

The 7250 bales of North Island wool on offer saw a 72% clearance with most types easing further.