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.
- ABC News