Fonterra Australia has today advised its suppliers an opening price of $6.60 per kilogram of milk solids (kgMS) for the new season.
Fonterra Australia Managing Director René Dedoncker said that announcing the season’s average farmgate milk price in May will help decisions to be made on farm.
“As our industry and business evolve to deal with a smaller milk pool, we have a stronger focus on servicing local demand which brings greater opportunity for certainty on pricing.
“The broader global supply and demand picture is positive, with demand expected to remain strong across key trading partners and a favourable exchange rate.
“Importantly, it’s a competitive milk price for our Australian farmers that enables us to maintain a sustainable model in Australia and deliver a return on investment for our business,” Mr Dedoncker said..