CLOSING PRICE MEANS NOTHING UNTIL MONEY IN THE BANK
TIM AND Bridget Goulding currently milk more than 100 cows on their property in Strathmerton, but normally would be milking about 150 to 160 and had been supplying Fonterra and Bonlac for 20 years.
‘‘In a low input system, it will be possible to make an income on (the opening price), but the main thing is the carrying of the money from the year before,’’ Mrs Goulding said.
‘‘If you were starting afresh, it’s quite a good opening price.’’
‘‘It’s the repayment we’ve got to make on that now, it is a loan and the principal repayments on it start on the 15th of July dairy cheque and continue to come out for three years,’’ Mrs Goulding said.
‘‘We will just gradually increase numbers again, the main thing is the ability to deliver on their projections, because it is just that,’’ Mr Goulding said.
‘‘Having opened at $5.30, it doesn’t leave much room for the market to flatten off again.’’
‘‘That is a concern, as in their ACCC submission, Fonterra does not agree with calls to ban step-downs, they say it would mean opening at a lower or more conservative price,” Mrs Goulding said.
‘‘I don’t think we can ever be looking at what our closing price will be again until it’s actually money in our bank, because 55 days out from the end of the season and they took the money back off everyone, it’s disgusting.’’