Fonterra steps up to $5.50

28 Jul, 2017 09:47 AM
Comments
0
 
René Dedoncker: Since the start of this season our milk pool has grown, and our assets are nearing optimal capacity.
the rally in the Australian dollar was likely to influence the end of season milk price ...
René Dedoncker: Since the start of this season our milk pool has grown, and our assets are nearing optimal capacity.

Fonterra Australia has stepped up its farmgate milk price to $5.50 a kilogram milk solids.

It has also updated its forecast closing price range for the 2017/18 season to $5.50-$5.80/kg MS.

Suppliers will also receive the additional 40c/kg MS announced previously, in lieu of payback for the price clawback of season 2015/16.

This brings the total average cash paid to $5.90/kg MS.

The increase will apply from July 1 and will be paid on 15 August 2017.

Fonterra Australia managing director René Dedoncker said that improved market conditions and the strength of the Australian business supported this step up.

“Since the start of this season our milk pool has grown, and our assets are nearing optimal capacity,” Mr Dedoncker said.

“Coupled with strong demand from Fonterra’s Australian and global customers, this has enabled us to deliver this step up to our farmers.

“This price increase will improve cashflow positions on farm, reinforcing growing confidence of our farmers.”

Fonterra has also updated its forecast closing milk price range, to $5.50 to $5.80kgMS, and noted that while commodity prices are strong, the rally in the Australian dollar was likely to influence the end of season milk price within that forecast range.

“We continue to monitor currency movements closely and will keep our farmers updated throughout the season with the latest market conditions,” Mr Dedoncker said.

Want to read more stories like this?

Sign up to receive our e-newsletter delivered fresh to your email in-box twice a week.

Click here

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Sorghum and maize can each play a part in providing home-grown feed on dairy farms but farmers need to carefully prepare and follow a plan to obtain the most value from these crops.16 Oct 17 Sorghum and maize can each play a part in providing home-grown feed on dairy farms but farmers need to carefully...
Several new additions to the baled silage marketplace will reduce bale spoilage and the number of decomposing bales that can leak effluent into the soil and water tables close to the ground surface. 
27 Sep 17 Several new additions to the baled silage marketplace will reduce bale spoilage and the number of decomposing bales...
light grey arrow
Dear , Our silage films also can reach 55% stretch, would you like to test ? it's also very
light grey arrow
Aus lucerne export to China. how about Aust. dairy farmers? Them don't need any lucerne.Do they?
light grey arrow
The Seralini study showing long term ingestion of GE corn is dangerous to health. This study was
Dairyfarmers are reminded that chemicals used on farms, including those used to clean and sanitise the plant and milk vats, must be registered with the Australian Pesticides and Veterinary Medicines Authority (APVMA).
20 Sep 17 Dairyfarmers are reminded that chemicals used on farms, including those used to clean and sanitise the plant and...
When Victorian dairyfarmer Lauren Finger's father said he had an idea, little did she know how much of an impact his invention would improve her on-farm productivity and safety.
05 Sep 17 When Victorian dairyfarmer Lauren Finger's father said he had an idea, little did she know how much of an impact his...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.