Fonterra Australia has advised its farmers of an increase of 10 cents per kilogram of milk solids (kgMS) to its farm gate milk price for the 2017-18 season, bringing its average farm gate milk price to $5.62/kgMS when changes to milk composition and the seasonal curve are factored in.
Fonterra’s additional payment of 40¢/kgMS is payable on top of the revised farm gate milk price, and brings the total average cash paid to $6.02/kgMS.
Fonterra Australia managing director René Dedoncker said Fonterra’s Australian business was growing stronger as its product mix rebalanced, enabling it to earn good returns from the market.
‘‘Our plants, including our recently reopened Stanhope cheese plant, are operating efficiently,’’ Mr Dedoncker said.
The increase will apply from July 1, 2017 and was to be paid on December 15.
Fonterra has also revised its forecast closing milk price range ($5.62 to $5.70/kgMS), and noted that while currency had weakened, there had also been some softening in the global market.