increase font size
Wayne Langford, Federated Farmers, believes Fonterra's high milk price forecast will also put heat on other processors to match this performance.
Fonterra's record forecast milk price puts the pressure on other processors to match their performance, says Federated Farmers dairy section chair Wayne Langford.
Last month Fonterra lifted its 2021-22 forecast farmgate milk price range to $8.90 - $9.50/kgMS, increasing the midpoint of the range, which farmers are paid off, by 50 cents to $9.20/kgMS. The previous record milk price of $8.40/kgMS was set in the 2013-14 season.
Langford says this is a strong result in uncertain times.
"It not only drives the milk price for Fonterra farmers but will also put heat on other processors to match this performance," he told Dairy News.
"It will be interesting to see how other processors react to this announcement."
Last week Synlait lifted its forecast base milk price for the season by $1.25 to $9.25/kgMS.
The country's second largest milk processor Open Country Dairy paid its suppliers $9.01/kgMS in full for milk supplied in November and December.
Langford says farmers will welcome the lift in the forecast milk price.
"Any payout increase is welcomed by farmers, especially in the latter half of the season when there is more surety in the forecast," he says.
However, some shine will be taken off the rising farm working expenses.
"While this payout is welcomed by farmers, some of the shine has been taken off the on-farm profit by the increased costs of most products and services.
"There is also an upward trend in interest rates and most farmers are remembering the significant drop after the last high payout, so will be putting a bit in their back pocket in case that happens again."
Langford praised Fonterra's performance, especially during the pandemic.
"Years of work around food safety standards, product lines and logistics have paid off in these uncertain times.
"This has helped farmers feel proud of what they do each morning and the backbone they are providing for the NZ economy."
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
