Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
Some Hawke's Bay farms remain inaccessible by mik tankers, brining their 2022-23 season to an end months earlier than normal.
The co-operative has agreed to pay these farmers for loss of income under its 'force majeure' terms, based on the average of the past three year's milk production.
Fonterra Co-operative Council chairman John Stevenson told Rural News that he is really proud of how the co-op has supported affected members.
"Fonterra has covered farmers' milk that was unable to be picked up, including to continue to support those who have had to dry off due to no tanker access," he says. "This is a unique benefit of being part of the co-operative."
Stevenson, who was in Napier last week, met some of the affected farmers.
"I was blown away by the resilience shown by farmers I met who had been cut off by the storm. Some have significant infrastructure damage to farms.
"Many co-op members, including councillors, have also provided support to their fellow co-op members, both during the weather events themselves and afterwards, including by sending generators, feed, and making donations of rewards dollars via Fonterra Farm Source.
"I have not heard from one farmer shareholder who does not support the co-op covering for lost milk."
