Dairy giant Fonterra is lifting farmgate milk prices for autumn — but one processor has been singled out for its laggard approach. Discover why.
Dairy processing giant Fonterra has become the first to announce an autumn step-up in milk prices, lifting its rate by 20c/kg of milk solids.
Australian-based management confirmed the processor’s weighted average milk price now sits at $8.35/kg of milk solids, following a previous 15c/kg increase in December that saw others follow suit ahead of Christmas.
Fonterra Oceania farm source and sustainability director Matt Watt said the latest step-up comprised of a rise of 17c/kg of butterfat and 24c/kg of protein.
“As we earn price in the market, it’s always been our commitment to farmers that we will pass it on,” Mr Watt said.
“In recent months, global market conditions have held and continued to show signs of improvement.
“While current uncertainties in the global economic and trade environment remain, and there is potential for disruption, the softer Australian dollar has enabled improved returns on some of our export exposed product, supporting this step-up.”
Fonterra factory at Stanhope Picture: Zoe Phillips
In December, Fonterra was the first processor to lift at the farmgate for the 2024-25 financial year after a five month period of static pricing across the processing sector.
Arch rivals Saputo and Bega swiftly followed, although most smaller processors did not deviate from their June opening prices until January, generating criticism from farmer lobby leaders.
Dairy Farmers Victoria president Mark Billing welcomed Fonterra’s announcement and said Saputo, Bega and other processors needed to follow suit.
“This is a positive sign from Fonterra and reflects the strength of the international dairy market. It was also needed with rising input costs, although there’s still plenty of room for pricing improvement across the board,” he said.
“It’s been a very dry season across much of Victoria, particularly in southwest Victoria, and we’re heading into a weekend that’s going to be warmer than what we usually see in April.
“Conditions around the Heytesbury region in particular are the driest they’ve been in many, many years.”
While Lactalis and smaller processors such as Burra, UDV and Bulla have all provided at least one step up this season, Mr Billing said it was worth noting Australian Consolidated Milk was yet to lift at the farmgate.
ACM chief executive Jason Limbrick confirmed in January that the Kyabram processor would stick to its $7.80-8.20 per kilo milk solids range, with no reported change so far.
“ACM are the only, or one of the very few, to not provide at least one step up. That’s not reflecting the significant market and currency changes since June,” Mr Billing said.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
You may be interested in
- Topics |
- Fonterra
Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.
Related
notes
BUY & SELL DAIRY PRODUCTOS IN
Latest News
Featured
Join to
Most Read
1.
2.
3.
4.
5.
News by State
World
eDairy News Spanish
eDairy News PORTUGUESE
