FONTERRA has made its second milk price increase of the 2009-10 season for Victorian and Tasmanian farmers.
The price increase is 13c a kilogram of milk solids (i.e. 8c a kg butterfat and 20c a kg of protein) and is retrospective to July 1."This increase means that from next week our more than 1300 suppliers in Victoria and Tasmania will start to receive an additional $15 million in their pockets," Fonterra’s national milk services manager, Heather Stacy, said.
"We recognise it has been a tough season for dairy farmers. We have been monitoring market conditions closely in order to pass through an improvement in prices as soon as it is responsible to do so.
"In this week’s Fonterra globalDairyTrade, prices for whole milk powder rose for the fourth consecutive month, reinforcing the positive signs of recovery in commodity markets after a year of unprecedented volatility," she said.
"This has meant we are now in a position to pass on an increase in milk prices to our suppliers.
"We remain determined to reflect any further significant improvement in market conditions in our price later this season. In this regard, the strength of the Australian dollar is a major limitation on the opportunity for farmers to benefit further from improved commodity prices," Ms Stacy said.
