Friday, March 23, 2018
 Fonterra Announces Higher Prices for Suppliers  

Dairy farmers in Victoria and Tasmania will benefit from a significant price rise from a major milk supplier.

The dairy processor, Fonterra, has announced a price rise of 20 cents a kilogram for milk solids, taking the total price to $4.26 per kilogram and pouring an extra $70 million into dairy farmers' pockets over the next year.

Fonterra's Managing Director, Bruce Donnison, says as the global downturn eases, the increasing demand for dairy products has sparked the rise.

"Now we're starting to see the customers come back to the normal levels of demand," Mr Donnison said.
The news has come as a relief to farmers in Tasmania, who have suffered through a year of poor weather and a series of price cuts.

Dairy farmer, Gary van der Drift, says overall there has been an 18 percent price rise of late.

But he says it is still unlikely that farmers will turn a profit this year, after 12 months of price cuts and poor weather.

"Basically it means we can pay all our creditors and we're not going to have any bills hanging over our heads at the end of the season.

"I don't know how excited you can get about it, but we're not going to lose any money this year like we did last year," he said.

Farmers in Tasmania's south who are under contract to the state's other major supplier, National Foods, have yet to hear whether they will also benefit.

Source: ABC (Australia)

Posted on Thursday, February 18, 2010 (Archive on Thursday, February 25, 2010)
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