Fonterra leads with opening milk price and step-up
Fonterra has announced its opening 2010/11 milk prices in Victoria and Tasmania with a forecast average annual return of $4.36 per kilogram of milk solids as well as a price increase for the current 2009/10 season.
Speaking at a farmer supplier meeting at Ringarooma in Tasmania, Bruce Donnison, Managing Director, Fonterra Ingredients Australia, said at this price Fonterra is forecasting that it will pay Australian farmers more than $500 million for their milk in 2010/11.
“This is the third highest opening price on record and a 20 per cent increase on the opening price for 2009/10,” said Mr Donnison.
“The past 18 months have been difficult for many Australian dairy farmers. We are coming out with the opening price early so our suppliers can plan for what we hope will be a strong season in 2010/11.
“To help farmers’ cashflow now we are also pleased to be in a position to pay our fifth step-up for the current 2009/10 season,” said Mr Donnison.
Fonterra will be implementing a retrospective milk price increase for all milk supplied since 1 July 2009 of 4 cents per kg of fat and 10 cents per kg of protein.
“This latest milk price increase represents an additional $7 million for Fonterra’s Victorian and Tasmanian suppliers that will hit farmers’ bank accounts next month,” said Mr Donnison.
“Fonterra’s pricing for next season reflects the positive conditions on global and domestic dairy commodity markets. However, with economic uncertainty surrounding the situation in Europe and the recent fluctuations in the Australian dollar, the operating environment for the Australian dairy industry remains volatile.”
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
