Fonterra Australia has revised its weighted average opening price fron $6.06/kgMS to $6.40 per kgMS and forecast closing range to $6.40 - $6.70 per kgMS for the 2020/21 season.
Fonterra Australia managing director René Dedoncker said that Fonterra had kept in line with industry convention to open at a price lower than the full-year forecast, with the understanding that step-ups would be paid throughout the season where the market supports it.
“Clearly though, our opening price needs to be competitive. We said we would review our pricing in June, and we have brought this forward due to the competitive environment we are in, which is what is driving this price," he said.
“Our revised opening price fits at the lower end of our original full-year forecast and is aligned with our business plans for the year ahead.
“On Monday we said that the impact of COVID-19 on economies and the market is still largely unknown and will be uncertain for some time. Consumers’ purchasing power is reduced and the foodservice industry remains impacted. This holds true today,” he said.
For more information visit: www.farmsource.com.au/pricing