Wednesday, 10 October 2018 15:14

Fonterra Oz suppliers paid more than NZ farmers

Written by 
Fonterra Australia managing director, René Dedoncker. Fonterra Australia managing director, René Dedoncker.

Fonterra’s Australian milk suppliers are going to be paid more for their milk than what the co-op’s NZ farmer shareholders are getting.

The co-op has just announced an A13c lift in farmgate mlk price to Australian farmers, taking the average payout to A$5.98/kgMS or NZ$6.56/kgMS.

It has also cut the top end of forecast closing milk price range in Australia by to A$6.10kgMS (NZ$6.69) for the 2018/19 season. 

The announcement came on the same day as NZ farmers face a milk price drop of up to 50c/kgMS. Fonterra’s NZ suppliers can expect a forecast payout of $6.25 to $6.50/kgMS, down from $6.75/kgMS announced last month.

Fonterra’s Australian suppliers are not shareholders like most NZ suppliers.

Fonterra Australia managing director René Dedoncker says the A13c increase will help support its farmers who are facing challenging conditions.

“Rising costs for feed and water due to the drought means that cashflow is even more critical for our farmers. Receiving this increase in their milk payment now, rather than later in the season, will help our farmers make important decisions on input costs and plan for the remainder of the year. 

“This milk price is reinforced by our strong Australian business which is performing well and generating repeatable returns, and is supported by tightening domestic supply of milk and the weakening Australian dollar.” 

 However, Dedoncker also noted that market conditions were putting downward pressure on the upper end of the forecast range announced in May. 

 “A weaker currency has only partially offset the impact of an increase in production this season in some other dairy-producing countries.”

 

More like this

Fresh is best

The shelf life of fresh milk can be extended up to two months by a technology developed by an Australian company.

Fresh milk stalling growth

Australians’ love of fresh milk is restricting the growth of the dairy industry, says Norco Dairy chairman Greg McNamara.

Challenging year for Oz farmers

Australian dairy farmers are facing one of their most challenging years in decades, says Norco Dairy chairman Greg McNamara.

Fonterra to support farmers meet target

Fonterra says the Government's new methane target is very ambitious and will need hefty spending on R&D to give farmers the solutions they need to achieve.

 
 

» The RNG Weather Report

» Latest Print Issues Online

Milking It

MooFree May

UK activists have resumed their attack on the dairy industry.

Fresh is best

The shelf life of fresh milk can be extended up to two months by a technology developed by an Australian…

 
 

» Connect with Dairy News