Second Fonterra milk price increase in 2009/10
AUSTRALIA - Fonterra’s National Milk Services Manager, Heather Stacy, today announced Fonterra has made its second milk price increase or ‘step-up’ of the 2009/10 season for Victorian and Tasmanian farmers.
The price increase is 13 cents per kilogram (kg) of milk solids (i.e. eight cents per kg butterfat and 20 cents per kg of protein) and is retrospective to 1 July 2009.
“This increase means that from next week our more than 1,300 suppliers in Victoria and Tasmania will start to receive an additional $15 million in their pockets,” said Ms Stacy.
“We recognise it has been a tough season for dairy farmers. We have been monitoring market conditions closely in order to pass through an improvement in prices as soon as it is responsible to do so.
“In this week’s Fonterra globalDairyTrade, prices for whole milk powder rose for the fourth consecutive month, reinforcing the positive signs of recovery in commodity markets after a year of unprecedented volatility,” said Ms Stacy.
“This has meant we are now in a position to pass on an increase in milk prices to our suppliers.
“We remain determined to reflect any further significant improvement in market conditions in our price later this season. In this regard, the strength of the Australian dollar is a major limitation on the opportunity for farmers to benefit further from improved commodity prices,” said Ms Stacy.
