Fonterra Australia has lifted its farmgate milk price by 15c per kgMS, averaging $9.55kgMS with payment to be made 15 February, comprising 13c/kg of butterfat and 18c/kg of protein. Fonterra’s Global Dairy Update indicates local milk intake is down 2.8% for the six months to December compared to the same period a year ago.

Fonterra’s managing director Rene Dedoncker said the company were able to lift prices as it captured strong commodity prices for its cheese contracts in the first half of the season. Dedoncker said demand for Fonterra’s domestic brands and products remain strong.