Tuesday, 22 September 2015 12:52

Oceania guarantees minimum payout

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Oceania Dairy has announced they will supply farmers with a guaranteed minimum milk payout of $4.50/kgMS for the 2015-16 season.

On the back of continued turbulence in global dairy markets, Oceania hopes their guarantee will help support struggling dairy farmers.

"With Fonterra reducing its forecast payout for the season to $3.85, we wanted to send an important signal of support and partnership to our supply farmers," says Roger Usmar, general manager, Oceania Dairy Limited.

"Backed by our owner, Yili, Oceania Dairy has looked at how we can practically support our suppliers at a difficult time for the sector.

A premium minimum guarantee will offer farmers some certainty to their cash flow and operational planning for the 2015-16 season, says Usmar.

"Our suppliers are the life-blood of our business so we are investing in them and their future with Oceania Dairy," he says.

Yili recently announced details of a further five-year, $400 million development project on the Glenavy site. The comprehensive project will add capacity to output a wide range of additional products from the Glenavy factory.

This will include a whole milk powder dryer, an infant formula canning line and facilities to manufacture UHT milk products and lactoferrin.

"By working in partnership with our suppliers now, we believe that we can all be better positioned to capitalise on the opportunities of the future."

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