Fonterra Australia has stepped up prices for its Australian suppliers to an average weighted price of $6 a kilogram milk solids.
Suppliers were notified on Friday of the step up of 12 cents/kg fat and 30 cents/kg protein to reach $6kg/MS, which will be paid June 15 and backdated to July.
The price brings Fonterra’s price to the same as other major processors Murray Goulburn and Warrnambool Cheese and Butter.
The announcement came just one day after Fonterra cut the forecast price for its New Zealand suppliers to NZ$4.40/kg MS.
It also comes a week after Fonterra Australia announced that its Fixed Base Milk Price scheme for 2015/16 would be $5.80/kg MS, 42 cents lower than the 2014/15 price. . .
No doubt there is a reason for Fonterra Australia’s suppliers getting so much more than Fonterra’s New Zealand suppliers. If you can explain it, please do.