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Fonterra Australia announces third step-up

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The Australian subsidiary of New Zealand dairy giant, Fonterra has announced a step up of 16 cents per/kg butterfat and 40 cents per/kg of protein, marking the processors third step up for the 2013/2014 season.

The step-up applies to suppliers in Victoria and Tasmania, and raises Fonterra Australia’s current, average farmgate price to $6.64 per kg of milk solids. The cooperative has also increased it forecast average closing price range for the 2013/14 season to $6.80-$7.00 per kg of milk solids.

Managing director of Fonterra Australia, Judith Swales hopes that the step-up will encourage further confidence in on-farm investment .

“This announcement will hopefully give our farmer suppliers the confidence to invest on-farm for growth so they can capitalise on opportunities for next season. It’s just another part of our commitment to making Fonterra Australia suppliers the most profitable dairy farmers in Australia, and we are always actively looking for more suppliers to join us.”

“We are also working hard to give our suppliers a line of sight on market factors that will affect global supply and demand next season.”

Chairman of Bonlac Supply Company (BSC) Tony Marwood welcomed the decision.

“BSC once again welcomes this strong step-up and the important increase in closing price range to $6.80-$7.00 kg/MS. Fonterra Australia continues to focus its efforts on-farm and we are working together to give farmers the tools they need to increase their profitability,” he said.

Follow dairy processor, Tasmanian Dairy Products (TDP) also announced a step-up last month of 18 cents/kg butterfat and 38 cents/kg protein, marking the fourth time that the processor has increased its price this season.

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