Fonterra Australia has today advised its suppliers that it is increasing its 2020/21 farmgate milk price by 13 cents, taking its average farmgate milk price to $6.53/kgMS. The payment will be backdated to 1 July 2020 and paid with March proceeds on 15 April 2021.
Fonterra Australia Managing Director René Dedoncker said that changes to market conditions since Fonterra’s last bi-monthly price review in January have enabled it to lift the milk price.
“While currency remains high it has stabilised and we’ve seen a sharp lift in commodities, particularly milk powders, which is helping to offset the currency.
Fonterra also announced its interim results today, with the Australian business delivering a good result.
“Our business is in good shape and is a safe home for our farmers’ milk.
“Our Consumer business produced a strong performance as consumers remained at home and our brands are well placed to benefit from the culinary trend. Each of our brands are growing ahead of their categories, extending our market leadership positions.
“Our Foodservice business, while impacted by COVID due to lockdowns and travel restrictions, has managed to rebound. The Ingredients channel has been impacted by the challenging trade conditions, including China trade relations, closure of the Daigou channel and shipping delays.
“Building a repeatable business gives us confidence in growing our partnership with our farmers and is one where we can all benefit.
“We remain committed to supporting our farmers through the consistency of regular price reviews, and paying a competitive milk price,” said Mr Dedoncker.