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Despite global dairy prices soaring in recent months, some farmers are still keen to reduce volatility and uncertainty.
The co-operative's first fixed milk price event for the next season attracted bids from 485 farms across the country.
The co-op says it received applications for 35 million kgMS at a fixed price of $7.43/kgMS, after a deduction of 10c/kgMS as a service fee. A total of 10 million kgMS was available.
Due to the oversubscription, all eligible applicants will receive only around 28% of what they applied for.
The co-op says the significant interest again highlights the benefit this financial tool has for farmers.
There will be an application window each month until December 2021 for the 2021/22 season. The March, April and May events are pre-season.
The next application window is April 12-13. Farmers will receive an email on April 10 with more details, including how to apply.
"Fixed milk price is a tool to help manage risk by allowing you to get a fixed price for a portion of your milk, giving you more control when budgeting, planning and managing your business," Fonterra head of Farm Source Richard Allen told farmers.
"Fixed milk price also helps our co-op lock in longer term contracts with key customers, benefiting all shareholders."