FONTERRA has revised its season forecast up and increased the price it pays to suppliers.
Today it told its Victorian and Tasmanian suppliers it would pay a backdated step-up of 8 cents a kilogram butterfat and 20c/kg protein – its first increase for the season.
"We are very conscious of the pressures on our suppliers this season with rising input costs and variable seasonal conditions in Victoria, in particular," general manager of milk supply Heather Stacy said.
"So we brought our review forward to ensure we were able to get cash out to our suppliers as quickly as possible."
Fonterra also revised its full-year price to $4.80-$5 a kilogram of milk solids.