Friday, July 1, 2022

Fonterra Australia announces opening milk price

Fonterra Australia announced a opening farmgate milk price for the 2013/14 season of $5.60 per kilogram of milk solids (kgMS) for Suppliers in Victoria and Tasmania.  This price matches that recently released by Murray Goulburn whose milk price sets the standard for milk supply in Victoria.    

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.

“We value our Supplier’s loyalty and commitment to producing high-quality milk and promise to work with them to ensure their farm is a robust, sustainable business that delivers solid returns over time.”
Given the challenging conditions many farmers are facing, Fonterra is also extending the opportunity for its Suppliers to access interest-free advances until 30 September 2013. The advances are for a period of six months.
Individual supplier’s milk prices will vary across Fonterra’s supply regions, depending on the individual farm’s milk profile, pricing options, regional production factors, milk quality, and farm management systems.
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