Fonterra has lifted its Australian milk price, becoming the first major milk processor to do so this season.
Fonterra Oceania farm source director Matt Watt said suppliers were advised on December 3 of an increase of 15 cents/kg of milk solids, taking their weighted average milk price to $8.15kg/MS.
“It’s been positive to see Global Dairy Trade prices increase since August, particularly after a flat period for cheese, butter and skim,” Mr Watt said.
“As we earn price in the market, it’s always been our commitment to farmers that we will pass it on, and we’ve been able to do that following some improvement in cheese values which we have translated into contract prices.
“We continue our bi-monthly review process, and the next one will be in February.
“We will continue to keep our farmers informed on market conditions which impact the Australian milk price throughout the season.”