Fonterra announced on Friday a record sixth step-up in milk price for its Victorian and Tasmanian milk supply for the 2007/08 season.The milk price increase is 17 cents/kg butterfat and 42 cents/kg protein and is retrospective to 1 July 2007. It will be paid to suppliers on 15 June 2008.

National Milk Services Manager, Heather Stacy, said the announcement will drive industry growth and provides a significant boost for dairy regions in Victoria and Tasmania. “Our strong milk price is very encouraging for farmers as they plan ahead for next season in an environment where input costs are high and seasonal conditions are variable,” Ms Stacy said. “We remain firmly focused on working with our suppliers to provide them with the clarity of signals they need to run and grow their businesses profitably. We are determined to vigorously compete in this market to retain and grow our milk supply.”

“This step-up provides a further opportunity for our suppliers to consolidate their commercial positions in readiness for next season,” Ms Stacy concluded.

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