June 15, 2017
Fonterra Australia announces opening price of milk solids for 2017-18

In mid-June, Fonterra announced to Australia's dairy farm suppliers an opening price of an average AUD5.30/kg (US$3.83/kg) of milk solids for the 2017-18 season - a price higher than its key competitor Murray Goulburn, ABC News reported.


Murray Goulburn earlier revealed its opening price of AUD4.70 (US$3.40). with a closing range of AUD5.20-5.40 (US$3.76-3.90).


Fonterra has updated its forecast for its closing range at AUD5.40-5.80 (US$3.90-4.20). The company's recent announcement came after Bega Cheese, and Warnambool Cheese and Butter both opened at AUD5.50 (US$3.40). 


Rene Dedonker, managing director of Fonterra Australia, explained that its offer was a responsible price in the current market due to stronger global dairy prices.


The company had also made major investments in Australia. According to Dedonker, Fonterra's key milestones in Australia includes a multi-million dollar cheese plant in Stanhope, increased capacity at its Cobden and Wynyard plants, and a joint venture with Beingmate in Darnum.


"To support our Stanhope investment and ensure we fully optimise the new plant, we need to grow our milk pool," Dedonker added. "We believe that, when combined with our additional 40 cents per kilogram milk solids payment, our opening price will enable farmers to plan ahead and position their businesses to grow if they choose."

- ABC News

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