Fonterra opens at $6.55kgMS

by | May 12, 2021 | Australia, Prices

Fonterra Australia has announced an opening price of $6.55kgMS for the 2021/22 season, $0.15 higher than last year’s opening price. Along with next season’s opening price comes a new pricing structure, which gives farmers more choice to better align milk prices to their milk production curve. Fonterra will offer suppliers either a 7/5 or 8/4 pricing structure, which will ensure farmers are getting paid for what they deliver in a more efficient way. 

Good market conditions and a strong and well-performing business gives Fonterra confidence to provide an early opening price for next season, well ahead of the 1 June deadline under the Mandatory Code of Conduct. Fonterra Australia’s managing director Rene Dedoncker said the early announcement and the new pricing structure was a response to farmers requests, enabling suppliers to make better decisions and plan for the year ahead.

Meanwhile, at Milk Exchange Event #2 102.0m litres of farm milk was offered at $7.28kgMS in Victoria and $9.49kgMS in NSW. Bids from milk buyers ranged from $6.60 – 6.80 kgMS in Victoria at an average of $6.68kgMS an $0,08kgMS from the previous auction on 21 April 2021. Bids were made on 65% of the milk on offer (up from 9%  at last auction). The spread between Offer price and Bid price was $0.35 – $0.80kg MS in Victoria and no trades were made.