Fonterra forecasts Oz payout
Forecast to include an added 40c/kg
Fonterra says it aims to pay its cash-strapped Australian farmers a A$5.70/kg to A$6.10/kg milk price for the 2017/18 season and will reimburse suppliers interest paid for last year’s support loans after discussions with its key supplier, Bonlac Milk Supply, in Melbourne.
The co-operative said its forecast full-year farmgate milk price range of A$5.30 to A$5.70 per kg of milksolids, would include an additional payment of 40c per kg of milksolids.
Fonterra Australia managing director Rene Dedoncker said the business was in a stronger position, which underpinned its forecast for the year.
“Providing Fonterra’s forecast full-year price range now is aimed at giving our farmers guidance so that they can plan for next season with confidence,” Dedoncker said.
“We said that we would consider Murray Goulburn’s recent announcements including the decision to forgive its Milk Supply Support Package. We’ve consulted with the Bonlac Supply Company on the best way to respond to our suppliers.”
Fonterra will also reimburse the interest charge for the Fonterra Australia Support Loans package that was included in this season’s milk price to all current suppliers.
“We believe this payment is the right thing to do and we’re committed to ensuring our farmers are better off by partnering with us,” he said.
Fonterra had met with Bonlac after Murray Goulburn — Fonterra’s main competitor across the Tasman — decided to dissolve a controversial scheme that was aimed at clawing back milk payments from Aussie farmers.
All future repayments to the scheme — which were to recommence from this July — would cease, Murray Goulburn said last week. The company would also make a payment to continuing and retired suppliers who had made scheme contributions between July and September last year.