Fonterra has welcomed the voluntary Dairy Industry Code of Practice for standard form contracts and is pleased to be one of the first companies to sign up to the new code.
René Dedoncker, Managing Director Fonterra Australia said, “We’ve been actively involved in the development of the code, along with members of ADPF and ADF, and we are already taking steps in our business to improve pricing signals so that farmers can have more certainty and plan with confidence.
“We’re committed to ensuring Australian dairy is sustainable and to working collaboratively with all those involved in it. Our farmers, our processors and our communities have invested over generations in this great industry and working together has always been at the core of our success.
Fonterra has taken positive steps in its business to ensure its farmers can be confident of clear and timely price signals. This includes the simplification of Fonterra’s pricing to increase transparency and remove some of the risk for farmers by taking out ratio based payments. This season, Fonterra announced its forecast closing range six weeks before the beginning of the season and has improved its way of working with the Bonlac Supply Company.
Last June Fonterra introduced a regular publication, Global Dairy Update: Australia, which provides farmers with a monthly update on the global dairy market, and will soon introduce its new milk price model to farmers so they know how their farmgate milk price is calculated.