BSC welcomes Fonterra milk price announcements

10 May 2017

The Bonlac Supply Company has today welcomed Fonterra Australia’s announcement that forecasts next season’s milk price range and the additional payment of 40 cents per kilogram of milk solids (kgMS) to its Australian farmers.

Bonlac Supply Company chair Tony Marwood said the forecast closing price range, and the 40 cent payment, showed that Fonterra was listening to farmers, and was committed to rebuilding confidence in Australian dairy.

“As farmers we need timely and clear price information so that we can plan ahead. Fonterra is first to provide a closing forecast price range for next season, and this goes along way for farmers in helping us budget with certainty,” said Tony.

“We have been working with Fonterra on what Murray Goulburn’s decision to forgive its Milk Supply Support Payment loan package means for Fonterra’s Australian suppliers, and the most appropriate way to respond.

“Fonterra will make an additional payment of 40 cents per kgMS on top of its milk price for next season to all current, retired and recommencing suppliers.

“The BSC has been very mindful that we had to be fair and equitable for all our farmers, understanding that many farmers made different decisions at the end of last season to suit their businesses.

“With the additional payment being available on next season’s production it gives our farmers the opportunity to get more out of it if they wish to grow. It also puts money in farmers’ hands almost immediately to assist with cash flow.

“Furthermore, this payment is designed to fulfil the benchmark milk price agreement for the 2015/16 season.

“We are working with Fonterra on a more transparent milk price, and we look forward to communicating that soon.

“The last twelve months have been difficult for all farmers, and today’s announcement is a significant step forwards to helping restore confidence in our industry,” concluded Tony.

For further information contact:

Tony Marwood, Chairman

0428 838 632

Will Kermode, Company Secretary

03 8541 1824