Fonterra launches $1500 on-farm funding for eligible farmers
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS - NZ74c less than New Zealand suppliers, based on the current exchange rate.
The price is made up of the minimum monthly rates set out in milk supply agreements and based on a mix of fat and protein and assumes standard production and quality incentives.
In New Zealand, Fonterra shareholders will receive an opening forecast milk price of $10/kgMS this season. However, Fonterra has announced a wide range forecast of $8 to $11/kgMS for the season.
In a letter to Australian suppliers, Fonterra Oceania managing director David Breckenridge notes that their opening price is higher than the current season, reflecting improved global market conditions, although dampened by a continued soft domestic outlook.
However, he adds that geopolitical tensions and potential trade disruptions, along with currency volatility continue to create uncertainty for the longer-term outlook.
“However, there are favourable signals for the season ahead that are building optimism for F26, including the increase in global dairy prices over the last 12 months,” he says.
“Global demand has shown signs of growth, with constrained global supply driving an uptick in global prices throughout the year. Australian dairy exports have strengthened on the previous year in value and volume. These improvements have been supported by a return to balance between local and global dairy prices and a favourable, yet volatile Australian dollar.”
But the domestic Australian market, where Fonterra directs majority of the milk, remains challenging. Inflationary pressures have yet to fully ease, and segments of Australian consumers continue to chase value through lower-cost dairy products. Foodservice channels, both locally and globally, are facing a multi-year recovery as even lower-cost restaurants are challenged as households eat out less.
“While there’s room for local demand to lift, we remain confident in the strength of our business and ability to be competitive on price as we navigate these conditions throughout the season. This is underpinned by the diversity of multiple dairy product types, sales channels, and markets that we sell into.”
Breckenridge says Fonterra Oceania is committed to paying a competitive milk price throughout the season.
He also spoke about the divestment of Fonterra’s Oceania and consumer businesses- Fonterra is looking at a trade sale or a partial float of the assets.
Breckenridge told suppliers that their milk contracts remain one of Fonterra’s most valuable assets.
“And we assure you they will carry through as part of any trade sale or Initial Public Offering (IPO).”
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…
OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…