Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
Tokoroa farmer Chris Luxford has reaped benefits from advice given by Fonterra milk quality managers.
As a strong dairy cooperative, Fonterra understands the importance of providing comprehensive assistance to farmers, including a range of services at no extra cost.
One of the most valuable of these is the coop’s milk quality service. Working with farmers nationwide to support on milk quality, sustainable dairy practices, animal wellbeing and food safety, the milk quality managers can identify opportunities for improvement and share knowledge from what works on other farms.
It’s a service that has reaped benefits for Tokoroa farmer Chris Luxford.
Chris milks 500 cows on 200 hectares south of Tokoroa. He’s been with the co-op for 40 years, starting his farming career in 1984.
Despite “four companies chasing me” Chris is a keen advocate of Fonterra’s Co-operative model.
“Fonterra sets the milk price based on a reliable model, so a strong Fonterra is good for all New Zealand dairy farmers.”
The co-op’s value isn’t just in the returns and long-term security though, but also things like tailored support from the Farm Source milk quality team, according to Chris.
First a bit of background.
The farm’s somatic cell count (SCC) had been a little bit of an issue for Chris and his team.
“It was the only milk quality issue we had. Although it wasn’t serious, we just couldn’t get it below 150,000. Even with a new cow shed, our cell counts went up by more than 30,000. We just couldn’t work out what was going wrong, and we started to get a bit frustrated because nothing we did would seem to change anything.”
It was then that his key Farm Source contact Vicki Wallace put Chris in touch with the milk quality team.
The specialist team met with Chris on the farm, made observations during milking and provided a range of recommendations.
“They just observed a few things and then we discussed improvements. Within a couple of days, we had a written report to confirm what we had talked about.
“We were already taking standard dry cow therapy steps but one of the things the team and our vet suggested was changing to short acting DCT and teat sealing all cows.”
The results were, in Chris’ words, phenomenal, with the farm’s average SCC dropping dramatically from 195,000 one season down to 110,000 the next.
So dramatic in fact that Chris has now reached Te Tihi status under The Co-operative Difference, the top of the mountain.
“It’s been a real winwin for us,” he says. “Not only with the financial incentive but it’s given our team a real morale boost and has become a real source of pride for them.
“It has also saved a lot of time on-farm. For every case of mastitis you get, there’s a lot involved in running a separate mob – so it simplifies management.”
And Chris’ advice for other farmers who may have been in the same boat is to “go for it because it might be worth a few bob.”
“It’s a free service and you don’t have to implement what they suggest if you don’t want to. You’ve got nothing to lose and maybe a lot to gain.”
Fonterra’s general manager on-farm excellence (milk) Chris Appleby says high quality milk is central to the coop’s success.
“Dairy is who we are and what we do best and our farmers are known for producing some of the finest milk in the world.
“Farmers like Chris take great pride in this so it’s important that we continue to support him, and all of our farmers, when it comes to protecting this reputation.
“We also know that lowering SCC for some farms can be an effective way to improve productivity with no additional inputs, helping to reduce emissions intensity.”
Advice At No Extra Cost
Advice on milk quality is just one of the services the co-op offers farmers for no extra cost.
Others include:
Fonterra Edendale has been recognised with the Mars Dairy Supplier Quality Award for the top performing supplier sites in the global food company's dairy supply chain.
Sheep milk processor Maui Milk has achieved grass-fed certification of milk supply against the AsureQuality Grass-Fed Scheme.
OPINION: What goes up must come down. So, global dairy prices retreating from lofty heights in recent months wouldn’t come as a surprise to many farmers.
Fonterra directors and councillors are in for a pay rise next month.
Federated Farmers says it is cautiously welcoming signals from the Government that a major shake-up of local government is on its way.
Ashburton cropping and dairy farmer Matthew Paton has been elected to the board of rural services company, Ruralco.
OPINION: Dipping global dairy prices have already resulted in Irish farmers facing a price cut from processors.
OPINION: Are the heydays of soaring global demand for butter over?