Fonterra Slashes Milk Price, Warns of More Cuts
AUSTRALIA - Fonterra Australia has slashed its milk price to farmers and warned of more severe cuts are to come.Fonterra managing director, Bruce Donnison, sent letters to 1500 of its suppliers last week stating the company had withdrawn its November step-up payment of 7 cents/kg butterfat and 17 cents/kg protein, according to Weekly Times Now.
The letter states, 'Since writing to you in early November, we have seen a further deterioration in trading conditions.
'Commodity prices continue to decline and this has been exacerbated in recent weeks by a rapidly deteriorating financial situation around the world; a deterioration which has far exceeded even our most pessimistic expectations.'
In the letter, Mr Donnison warned, 'Our forward expectations for the remainder of the season remain below any previous outlook'.