Fonterra's fourth milk price increase for 2009/10
Fonterra has announced a price increase of 20 cents per kilogram (c/kg) of milk solids (i.e. 12c/kg butterfat and 30c/kg of protein) for dairy farmers who supply its manufacturing sites in Victoria and Tasmania.
“This increase reflect conditions on global commodity markets, where despite some recent softening in demand, prices continue to be above the US$3,000 per tonne mark,” said Heather Stacy, Fonterra National Milk Services Manager.
“We have also seen some modest improvement in the currency situation, although the Australian dollar continues to be relatively strong.
“This milk price increase applies across-the-board to all current Victorian and Tasmanian suppliers and will be backdated to 1 July 2009. Our average annual price is now $4.26 per kg of milk solids,” said Ms Stacy
“Fonterra’s farmgate price has increased by around 18 per cent since the start of the season, which equates to an additional $74 million put in the pockets of our 1,300 dairy farmer suppliers.
“Fonterra’s four consecutive step-ups help deliver on our commitment to re-instil confidence in the manufacturing milk price system after the unprecedented volatility of last year.
“We remain determined to reflect any further significant improvement in market conditions in our farmgate prices,” said Ms Stacy.
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.
