$10 milk price still on
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.
Chief executive Richard Wyeth says the announcement will give certainty to their 400 farmer suppliers.
"There was some conjecture about payment and we've put that to bed," he told Dairy News.
Westland has been paying 10c above Fonterra's farm gate milk price for the past few seasons. The deal will now extend until the 2025-26 season.
Another milk processor, Synlait, faces the risk of farmer suppliers switching their supply to other processors like Westland and Fonterra.
Wyeth says they aren't actively advertising for suppliers.
"But i there are new suppliers interested in supplying Westland, our milk supply team will be happy to talk to them."
Volatile input costs, fluctuating commodity prices, a reduction in direct payments and one of the wettest periods in decades that resulted in a disastrous harvest, have left their mark and many UK farming businesses worse off.
European milk processors are eyeing more cheese and milk powder exports into South America following a landmark trade agreement signed last month.
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