Fonterra will pay $5.60/kgMS at the start of the season which commences on 1 July 2013 but has forecast a full-year milk price of $6.00/kgMS, plus or minus ten cents. “Our goal and strategy is to have the most competitive and sustainable dairy supply chain here in Australia. We know delivering on this goal starts with the profitability of our Suppliers and that’s why we are pleased to reflect the improved market conditions with a strong opening price for next season.”
Fonterra Australia has also announced a step up of 4 cents per kg of fat and 10 cents per kg of protein for milk supplied in the 2012/13 season for their Victoria and Tasmania suppliers.
Judith Swales, Managing Director, Fonterra Australia, said, “Next season looks positive, but we know it’s been a challenging season and that, right now, cash flow is essential to help Suppliers plan with confidence for next season. Sticking with our commitment to pass through cash and market improvements as soon as possible, and in the season in which milk is supplied, we are pleased we can deliver this further step-up to Suppliers.”
The step-up will be paid with June proceeds on 15 July 2013.
