Fonterra Australia has announced a lift in its 2021/22 farmgate milk price to $7.30kgMS, up 20c kgMS. The price hike is backdated to 1 July 2021 and comprises 17c per kg butterfat and 24c per kg protein.

Fonterra Australia managing director Rene Dedoncker said strong dairy prices and good performance of the Australian business prompted the price hike. Dedoncker said a dry summer across regions and higher input costs are affecting profitability on farm. Despite historically high commodity prices and a weaker Australian dollar, declining milk production in Victoria and Tasmania is limiting upside from export markets. Supply chain disruptions, global as well as domestic continue to impact Fonterra’s business with no immediate end in sight.