Dairy. Fonterra Australia has announced its forecast farmgate milk price for the 2017-18 season as well as an additional payment of $0.40 per kilogram of milk solids.
The dairy giant has forecast a range of $5.30 to $5.70 per kilogram of milk solids for the season ahead.
The additional monthly payment of $0.40 per kilogram of milk solids will be paid to all existing, retired and recommencing suppliers who supplied the company between April 30, 2016 and May 10 this year.
Fonterra Australia managing director René Dedoncker said consultation with Bonlac Supply Company, regarding recent announcements by Murray Goulburn Co-operative, resulted in the additional payment. Mr Dedoncker said this would allow farmers to plan for the season ahead following low milk prices in the past season.
Fonterra suppliers who continuously supplied the company between the above dates will have the option to receive the additional payment as an advance by July 31.
Fonterra will also reimburse suppliers the $0.85 per kilogram of milk solids interest charged.