NEW ZEALAND – Fonterra has revised its forecast farmgate milk price for the 2013/14 season to a record NZ$ 8.65 per kilogram of milk solids.
The leading dairy cooperative will pay its Kiwi producers a total of $8.75 when the previously announced dividend of 10 cents per share is taken into account.
The quarterly price review, a legal condition of the Dairy Industry Restructuring Act, is a reflection of global milk powder demand, Fonterra’s chairman, John Wilson said.
Fonterra's 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.
Mr Wilson said: “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 Co-operative.”
TheCattleSite News Desk
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