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FONTERRA HAS lifted its forecast farmgate milk price for the 2013/14 season by 35 cents to a record level of $8.65 per kgMS.
The increase – along with a previously announced estimated dividend of 10 cents per share –
amounts to a forecast cash payout of $8.75.
Chairman John Wilson says the higher forecast was good news for farmers, and for New Zealand.
"The increase reflects continuing strong demand for milk powders globally," he says.
"Last December, the board approved a forecast farmgate milk price that was 70 cents per kgMS below the farmgate milk price that had been calculated in accordance with the milk price manual.
"We are maintaining this position, with today's forecast being 70 cents lower than the $9.35 milk price derived under the milk price manual.
"The board has the discretion to pay a lower farmgate milk price than that specified under the manual, if it is in the best interests of the cooperative," says Wilson.
The board has also approved an increase in the advance rate schedule of monthly payments to farmer shareholders. Payments from March through to June will be 25 cents per kgMS higher than the previously published schedule.
"We will provide an update on business performance when we announce our interim result on March 26," says Wilson.
Fonterra is required to consider its farmgate milk price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).
Research lending to the production of dairy products that benefit the elderly and improves the overall wellbeing of all people is a key focus of Fonterra's Research and Development centre, based in Palmerston North.
Milk processors are either matching or beating Fonterra's record $10/kgMS opening forecast milk price as the 2025-26 season gets underway.
Fonterra has announced a record forecast opening organic milk price of $12.30/kgMS for the new season.
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.
A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.
Six livestock industry groups have signed a new agreement with the Government on how to prepare for, and respond to, a possible outbreak of Foot and Mouth Disease.
Farmers are welcoming a $17 million, seven-year collaborative science and research programme to lift pasture persistence and productivity.
Maize and sweetcorn pest fall armyworm has defied initial assessments regarding its ability to survive over winter in some parts of New Zealand.
A report released this morning at the National Fieldays, Mystery Creek shows dairy farmer confidence growing, but challenges remain.
Supporting farmers to build great workplaces is a focus for DairyNZ, which is why they say they have relaunched the self-assessment tool, Workplace 360.
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