Dairy. Fonterra Australia has announced an increase of 8 cents per kg of butterfat and 20 cents per kg of protein for the 2013/14 season for suppliers in Victoria and Tasmania.
It has also raised its forecast, average closing price range for the 2013/14 season from $6.20 to $6.40 per kilogram of milk solids (kg/MS).
Fonterra Australia managing director Judith Swales said: “At Fonterra, we believe investing in our farmer suppliers is critical to expanding the Australian dairy industry, and supporting our growth plans and the ambitions of our farmers.
“That’s why we are pleased to announce a further step-up from our November market review of 8 cents per kilogram of butterfat and 20 cents per kilogram of protein for the 2013/14 season.
“Our milk price still carries ‘no strings’ and does not include any dividends or conditional payments to inflate our headline price.”
The rise brings Fonterra Australia’s present, average farm-gate milk price to $6.10 kg/MS, the highest on record so far this season.
And Bonlac Supply Company chairman Tony Marwood said: “We welcomes this timely step-up by Fonterra Australia.
“It sends a strong signal to all our farmers and will greatly assist them to take advantage of the current, strong milk price to invest in their businesses.
It is another example of the close work between BSC and Fonterra Australia to make sure dairy farmers have opportunities to grow their businesses and become more profitable.”