Closing price delivered

While opening dairy prices may be still some weeks away, Fonterra has announced its forecast closing farmgate milk prices for the current season.

Fonterra last week announced the closing price would be in the range of $5.50 to $6.20 per kilogram milk solids.

The range is based on market indications which show a continued positive global supply and demand picture.

Fonterra Australia managing director René Dedoncker said demand was expected to remain strong and Fonterra remained committed to paying its farmers a price that is market-based, and sustainable.

“We are keeping to our promise to provide farmers with clear market-based signals in advance of the new season to allow them budget and plan.

“Earlier this year we launched Farm Source in Australia – a comprehensive package of tools and services to assist farmers with farm business management – which is changing the way we work with our farmers.

“The Farm Source online income estimator will be available in the coming weeks to provide our farmers with the ability to scenario plan for next season. Our business is in good shape as we continue competitive, to focus on driving sustainable performance.

Mr Dedoncker said they were building long-term relationships with strategic partners, and with cheese markets like China and Japan, to tap into growing domestic and global demand which is providing more opportunities to grow the value of our farmers’ milk.

“We are confident that our strategy and the strength of our three business channels – consumer, food service and ingredients – will enable us to continue to pay a competitive price next season. We expect seasonal growth from our existing farmers to continue next season which will meet our customer demand.”