Thursday, 15 June 2017 10:10

Fonterra’s Aussie opening milk price

Written by 
René Dedoncker. René Dedoncker.

Fonterra will pay its Australian suppliers an opening price of A$5.30/kgMS for the 2017-18 season.

It has also upgraded its forecast closing range by 10 cents/kgMS to A$5.40 to A$5.80kgMS.

When coupled with Fonterra’s A40 cents/kgMS additional payment, it means Fonterra farmers can expect to receive A$5.70kgMS, with a forecast closing price range of A$5.80 to A$6.20kgMS.

Fonterra Australia managing director René Dedoncker says it has taken a responsible view in setting its opening price and forecast closing range, which reflects Fonterra’s Australian improved product mix and the current commodities market.

“This is a responsible price in the current market. World dairy prices have strengthened, reflecting the strong fundamentals supporting global dairy markets,” says Dedoncker.

“We’ve made significant investments in Australia and achieved a number of milestones for our business, including our multi-million dollar cheese plant at Stanhope, expanded capacity at our Cobden and Wynyard plants, and commencing our joint venture with Beingmate at Darnum.

“This has helped to rebalance our product mix, underpinning the price we can pay to our farmers.

“To support our Stanhope investment and ensure we fully optimise the new plant, we need to grow our milk pool, and we believe that, when combined with our additional 40c/kgMS payment, our opening price will enable farmers to plan ahead and position their businesses to grow if they choose.” Fonterra Australia’s opening price and forecast closing price range also reflects its commitment to provide clear and timely price advice to its farmers.

Four weeks ago Fonterra announced our forecast closing range, six weeks out from the beginning of the season, to give farmers an early indication of our price so that they could plan ahead.

“Our opening price and forecast closing range are a demonstration of our new way of working, with close engagement with the Bonlac Supply Company to ensure we have input from our farmers.”

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

 

More like this

Infant formula leads the export charge

New Zealand exports of infant formula are expected to reach the billion dollar mark by 2021, the Ministry for Primary Industry says in its latest Situation and Outlook report.

Dairy tackles greenhouse gas emissions

DairyNZ chief executive Dr Tim Mackle says the new Dairy Action for Climate Change combines raising the dairy sector’s awareness of the issue and taking positive steps to mitigate the problem.

$20m for Te Rapa plant expansion

Fonterra is pumping another $20 million into its Te Rapa site to produce more export cream cheese and mini-dish butter to meet rising demand.

 
 

» Latest Print Issues Online

Milking It

Tuck in with impunity

Cheese lovers can breathe easy. Cheese, milk, and yogurt have been labelled ‘drugs’ of the food world. But are they…

‘We’ll see you right’

An ambulance service for cattle has begun in northern India’s Uttar Pradesh state in a bid to protect animals sacred…

 

» 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.