Saturday, January 20, 2018

Fonterra announces farmgate milk price

David Lee December 21, 2017

FONTERRA Australia has advised its farmers of an increase of 10 cents per kilogram of milk solids (kgMS) to its farmgate milk price for the 2017/18 season, bringing its average farmgate milk price to $5.62kgMS when changes to milk composition and the seasonal curve are factored in. The increase will apply from July 1, 2017 and was paid on December 15, 2017.

Fonterra’s additional payment of 40 cents/kgMS is payable on top of the revised farmgate milk price, and brings the total average cash paid to $6.02kgMS.

Fonterra has also revised its forecast closing milk price range, to $5.62 to $5.70kgMS, and noted that whilst currency has weakened, there had also been some softening in the global market.