16 December 2011

1 minute read

Oceania

Fonterra has increased its payout forecast range for the2012 season. Fonterra farmgate milk price will be NZ$6.50 per kilogram of milksolids (kgMS), up from NZ$6.30 kgMS.

Fonterra Chairman Sir Henry van der Heyden said the new forecast reflected a modest recovery in global dairy commodity prices over the past two months.

This increased payout is something that will help dairy farmers invest back into the farmed environment.

NZ Federated Farmers says that environmental compliance is improving. Infringement notices are down 13 per cent nationally and in 18 months time stock exclusion will be a condition of supplying Fonterra.

Furthermore, the number of dairy cattle in New Zealand is increasing, peaking at 6.2 million in June 2011. This is the first time the number of dairy cattle in New Zealand has exceeded six million.

The herd is now double what it was 30 years ago.

This is all an indication that New Zealand's dairy industry is moving forwards with a confident foothold on global markets.