Medals galore for Fonterra cheeses
Fonterra cheeses are continuing their golden run at the annual New Zealand Cheese Awards.
Fonterra’s Australian milk suppliers are going to be paid more for their milk than what the co-op’s NZ farmer shareholders are getting.
The co-op has just announced an A13c lift in farmgate mlk price to Australian farmers, taking the average payout to A$5.98/kgMS or NZ$6.56/kgMS.
It has also cut the top end of forecast closing milk price range in Australia by to A$6.10kgMS (NZ$6.69) for the 2018/19 season.
The announcement came on the same day as NZ farmers face a milk price drop of up to 50c/kgMS. Fonterra’s NZ suppliers can expect a forecast payout of $6.25 to $6.50/kgMS, down from $6.75/kgMS announced last month.
Fonterra’s Australian suppliers are not shareholders like most NZ suppliers.
Fonterra Australia managing director René Dedoncker says the A13c increase will help support its farmers who are facing challenging conditions.
“Rising costs for feed and water due to the drought means that cashflow is even more critical for our farmers. Receiving this increase in their milk payment now, rather than later in the season, will help our farmers make important decisions on input costs and plan for the remainder of the year.
“This milk price is reinforced by our strong Australian business which is performing well and generating repeatable returns, and is supported by tightening domestic supply of milk and the weakening Australian dollar.”
However, Dedoncker also noted that market conditions were putting downward pressure on the upper end of the forecast range announced in May.
“A weaker currency has only partially offset the impact of an increase in production this season in some other dairy-producing countries.”
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.