Fonterra raises price paid for Aussie milk
NEW ZEALAND - Fonterra is again ramping up the price it pays Australian dairy farmers for milk as it fights for farmer loyalty amid the drought that is affecting production across the Tasman.It follows an increase in December for the same reason.
Fonterra suppliers in Australia are not co-op members as in New Zealand so the company cannot count on shareholder loyalty to help it attract milk.
Last month the price went up A11c/kg of butterfat and A20c/kg of protein.
Yesterday, Fonterra announced a further A7c/kg butterfat and A17c/kg protein for this season, which ends in June.
Fonterra would not say how much the rises would increase total prices per kilogram, partly because it did not want to give market information to competitors and partly because the total would vary from farmer to farmer.
In Australia, due to strong competition between milk processors, individual companies may negotiate different prices with different farmers at the start of each season. Any increases during the season would be made on top of the base price.
Source: The New Zealand Herald