Fonterra Australia Opens 2023/24 Season at $8.65 per kgMS
Fonterra Australia has announced an opening weighted average milk price for the 2023/24 season of $8.65/kgMS. This price is made up of the minimum monthly rates set out in Fonterra Australia’s milk supply agreement, together with standard production and quality incentives.
Fonterra Australia Managing Director René Dedoncker said that Australian farmgate pricing for the season ahead remains higher than international commodity values, which have fallen by 17 per cent in the past year, however is supported by the strength of Fonterra Australia’s domestic business which comprises most of its revenue.
“Despite the decline in international prices, the outlook for dairy remains generally positive with global demand currently expected to lift in the medium-term, with only modest supply growth forecast in export regions.”
Mr Dedoncker said that Fonterra Australia’s business was well-placed to continue to deliver good returns.
“Our Australia business continues to perform well, with our Consumer and Foodservice sales channels maintaining their market-leading positions. Our focus remains on putting the milk from our farmer suppliers into the highest value products, managing our costs and maintaining a profitable business.
“We are confident in our price position and our ability to be competitive, with our diversified product mix, sales channels and access to domestic and export markets giving us options for our farmer suppliers’ milk.
“We are proud of the relationships we have built with our farmer suppliers, and we look forward to continuing our partnership with them in the season ahead,” Mr Dedoncker said.