Fonterra’s Third Milk Price Increase in 2009/10

“This milk price increase applies across-the-board to all our Victorian and Tasmanian suppliers and will be backdated to 1 July 2009. Our average annual price is now $4.06 per kg of milk solids,” said Ms Stacy.

15 Dec 2009 --- Fonterra’s National Milk Services Manager, Heather Stacy, has announced a price increase of 17 cents per kilogram (c/kg) of milk solids (i.e. 10c/kg butterfat and 25c/kg of protein) for Victorian and Tasmanian farmers.

“This milk price increase applies across-the-board to all our Victorian and Tasmanian suppliers and will be backdated to 1 July 2009. Our average annual price is now $4.06 per kg of milk solids,” said Ms Stacy.

“This is our third step-up of the season and means Fonterra’s farmgate price is now 46 c/kg higher than at the season opening in July.

“This increase will deliver an extra $20 million to our 1,300 suppliers and we hope will be a welcome injection of cash for dairy farmers in what has been a difficult season.

“Fonterra’s three consecutive step-ups help deliver on our commitment to re-instil confidence in the manufacturing milk price system after the unprecedented volatility of last year. “Our price increase reflects improved pricing in global dairy markets, although demand continues to be volatile

“We will continue to closely monitor the market into the New Year and we remain determined to reflect any further significant improvement in market conditions in our prices. There remains uncertainty about the sustainability of the recovery in dairy prices and the strength of the Australian dollar is limiting the opportunity for farmers to benefit further from improved
commodity prices,” said Ms Stacy.