Saturday, 25 July 2015 10:00

Breathing easier at the bank

Written by 

Farmers supplying Fonterra’s Wagga Wagga factory in the NSW Riverina have been offered a new pricing agreement aimed at taking the volatility out of milk income. 

After years of farmer lobbying, the processer offered a ‘cap and collar’ option, which will put a floor and a ceiling on the farmgate milk price for three years. 

About 20 farmers from Wagga Wagga and Finley districts supply the factory that produces Riverina Fresh products for the east coast market.

Euberta farmers Neil and Simone Jolliffe say they’ve sought this certainty since buying their farm seven years ago.

“When we bought the farm we were on A56 cents/L and the following year we dropped to A36c,” Jolliffe says.

“It’s come at a good time for us. We’re looking to grow the business but we didn’t want to grow it and take a big hit like we did in 2009. Now we’ve got an assurance that for the next three years this will be our price.”

Neil Jolliffe estimates this will mean his milk cheque will only fluctuate by about 4 cents/L over the next three years. 

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter