Fonterra's First Fixed Milk Price Events of 2024-2025 Draw Strong Farmer Interest
Source: The DairyNews
Fonterra's initial fixed milk price events for the 2024-2025 season witnessed significant participation from farmers, with approximately 800 applications received in total.
In the first event held in March, 100 farmers applied for a fixed milk price of $8.09/kg MS, with 20 million kg MS made available. The applications totaled 3 million kg MS.
The subsequent event in April saw a remarkable surge in interest, with 700 farmers applying for a total of 33 million kg MS, despite only 30 million kg MS being available. The fixed price offered for this event was $8.51/kg MS.
Both events exceeded expectations, and Fonterra accepted all applications in full, demonstrating the effectiveness of the changes introduced to its fixed milk pricing system this year.
Lisa Payne, Fonterra's milk supply director, highlighted the significance of these events in providing farmers with price certainty and aiding in budgeting and planning. Moreover, the increased participation allows Fonterra to secure longer-term contracts with key customers, benefiting all shareholders of the cooperative.
The substantial increase in the April offering, compared to the previous year, reflects Fonterra's commitment to providing flexible and accessible pricing options for its farmers. Despite the March event being undersubscribed, Fonterra remains dedicated to offering fixed milk pricing as a valuable risk management tool for its members.
The subsequent event in April saw a remarkable surge in interest, with 700 farmers applying for a total of 33 million kg MS, despite only 30 million kg MS being available. The fixed price offered for this event was $8.51/kg MS.
Both events exceeded expectations, and Fonterra accepted all applications in full, demonstrating the effectiveness of the changes introduced to its fixed milk pricing system this year.
Lisa Payne, Fonterra's milk supply director, highlighted the significance of these events in providing farmers with price certainty and aiding in budgeting and planning. Moreover, the increased participation allows Fonterra to secure longer-term contracts with key customers, benefiting all shareholders of the cooperative.
The substantial increase in the April offering, compared to the previous year, reflects Fonterra's commitment to providing flexible and accessible pricing options for its farmers. Despite the March event being undersubscribed, Fonterra remains dedicated to offering fixed milk pricing as a valuable risk management tool for its members.
