Fonterra to Provide Incentive for Herd Testing

This incentive has been developed in partnership with our farmers and is seen as not only providing substantial cost relief but also significantly contributing to improved long-term farm productivity.

10/07/08 National Milk Services Manager, Heather Stacy, said the incentive acknowledges herd testing as the backbone to progressive farm management.

“We have been genuinely concerned about the gradual decline in the amount of herd testing being undertaken by farmers,” said Ms Stacy.

“This incentive has been developed in partnership with our farmers and is seen as not only providing substantial cost relief but also significantly contributing to improved long-term farm productivity.

“For farming practices to continuously improve, we firmly believe herd testing is crucial for the provision of information on cow selection, breeding, milk quality and feeding efficiency.

“With more farmers undertaking herd testing, this can only improve our prospects for continued growth in long-term milk supply,” said Ms Stacy.

The new herd testing incentive will be paid over and above opening milk price and any subsequent  seasonal step-ups in the same way as Fonterra’s recently announced Seasonal Ratio Payment and  Northern Supply Incentive.

All current and new suppliers will qualify for the incentive. All eligible herd testing must be carried out through a recognised herd testing centre.

Fonterra will rebate suppliers 30 per cent of the herd testing costs incurred, to a threshold of $3.50 per cow.

The new initiative will commence from 1 July and will be paid for all herd testing carried out in the 2008/09 season. The first incentive payment will be made with July/August 2009 proceeds.