Fonterra's New Pricing Tools Win Over Dairy Farmers

Fonterra has introduced significant enhancements to its Flexible Milk Price program, bringing added certainty for farmers amid a volatile global market. The new features, FMP Plus and Seasonal Catch-up, allow farmers to manage their financial returns more effectively. FMP Plus lets farmers lock in a milk price up to 18 months in advance, providing a hedge against market downturns. The Seasonal Catch-up option offers flexibility by allowing farmers to adjust prices if market conditions improve after pricing their milk. These options have been positively received for giving farmers greater control over financial planning, showcasing Fonterra's alignment with farmer-shareholder needs. With 20% of Fonterra farmers using the FMP services, it benefits cooperative members broadly and acts as a case study on proactive risk management in agribusiness.