Fonterra: Third milk price increase in 2009-2010
Fonterra announced yesterday a price increase of 17 cents per kilogram (c/kg) of milk solids for Victorian and Tasmanian dairy farmers.
The price increase will will be backdated to 1 July 2009 and predicts an average annual price for dairy suppliers of $4.06 per kg of milk solids.
“This is our third step-up of the season and means Fonterra’s farmgate price is now 46 c/kg higher than at the season opening in July,” said Heather Stacy who is the National Milk Services Manager for Fonterra.
The increase will deliver an extra $20 million to Fonterra’s 1,300 suppliers in Victoria and Tasmania which will be welcomed after a difficult season. Fonterra considers there is still uncertainty about the sustainability of the recovery in dairy prices while the strength of the Australian dollar may dampen the opportunity for Australian farmers to benefit further from improved commodity prices.