Wednesday, 12 December 2018 08:41

Fonterra farmers to fix the price of their milk

Written by 
Robert Spurway. Robert Spurway.

Fonterra is giving farmers the option to fix the price of some of their milk.

The co-op is introducing a new tool called Fixed Milk Price. It joins a set of seven of Fonterra’s financial tools and aims to assist farmers with budgeting, planning, and managing on-farm profitability.  

Farm Source and global operations chief operating officer Robert Spurway says the co-op is committed to making a difference for Fonterra farmers and providing flexible options to help them share up, invest on farm, and manage financial exposure.

“This season reminds us of the volatility in the global marketplace and the impact it can have on the milk price. While the co-op manages this volatility as best it can when selling our products, we recognise that it’s farmers who feel the brunt of it.

“In addition to providing farmers with the opportunity to get more price certainty, the Fixed Milk Price will also provide the co-operative with certainty on the margins it can achieve on a portion of milk supplied. It’s a win-win,” says Spurway.

How it will work

- All Fonterra farmers will have the opportunity to participate on a monthly basis (excluding January and February)

- The Fixed Milk Price will be referenced to the NZX Milk Futures Market, minus a service fee of no more than 10c/kgMS initially

- Over the course of a season, farmers will be able to fix up to 50% of their estimated milk production per farm

- Fonterra will make at least 1 million kgMS available at every event and up to a total of 5% of New Zealand milk supply available in a given season

More like this

Power plant to close

Energy company Contact is closing its 44-megawatt Te Rapa power station in June next year.

National

Yili tops tally

Chinese dairy giant Yili topped the tally at the World Dairy Innovation Awards held recently in France.

Deer milk wins global award

Deer milk made by state-owned farmer Pāmu has won the ‘Best Dairy Ingredient’ category at the prestigious World Dairy Innovation…

DWN secures state funding

A Dairy Women’s Network (DWN) programme has been named as the recipient of two years of funding support from the…

Machinery & Products

Beauvais hits one million!

Massey Ferguson recently announced that its Beauvais factory in France has produced its 1,000,000th tractor, having started manufacturing tractors on…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Tinder for cows!

OPINION: Irish farmers can now swipe right on a tinder type dating app for cows!

Cow and cars

OPINION: Cows are the favourite target of vegans, Greenpeace, the Green Party and plant-based food advocates.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter