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Supplying Milk to Fonterra in Australia

Fonterra's Milk Supply Group in Australia is made up of our regional Milk Supply Officers (MSOs) and the central Supplier Administration Centre.

Collectively, they are the front line in supplier services, providing the information, expertise and support farmers need to manage and grow their businesses profitability if they choose to do so.

Fonterra Milk Supply Australia works closely with Bonlac Supply Company and Fonterra Milk Australia suppliers to assist suppliers wherever and whenever they can.

Milk price structure

  • Payment = Fat ($/kg) + Protein ($/kg) - vol charge (c/l)
  • Subject to a capacity adjustment based on milk supply during the peak period
  • Based on daily production and paid the following month (15th)
  • Milk quality focused
  • Incentive for size - Production Incentive, based on yearly volumes (up to an extra five per cent above the base milk price for large suppliers)
  • Growth Incentive (where suppliers receive an extra payment for any milk collected above the average production level of the previous two seasons)

Benefits of supplying Fonterra Australia

  • Price incentives for milk growth
  • A range of flexible milk price options that enable farmers to be more profitable
  • Leading player in the Australian dairy industry
  • Modern plants - capacity for growth
  • Innovative value-adding Ingredients business
  • Focused Milk Supply Group
  • Incentives for purchase of cooling equipment
  • Seasonal finance available
  • DairyWeb, a dedicated web site for suppliers

In order to meet the global demand for dairy, Fonterra is committed to securing the right levels of milk supply to meet our consumer and customer demands.

To find out more about becoming a supplier, contact one of our Milk Supply Officers via the Supplier Administration Centre on 1800 266 674.

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