Fonterra have announced its opening price for 2010/11 at $4.36/kgMS and a fifth step up for the current 2009/10 season of approximately 6.0 cents/kgMS.
While an early announcement of next seasons milk price is welcomed by farmers, it is also tainted with strong disappointment at the level of milk price received for the 2009/10 season, with many farmers receiving an expected closing milk price of $4.10-$4.15/kgMS net of milk cartage costs; below where expectations from mid season have been. The much publicized Fonterra NZ milk price increases have continued to raise questions in Australia of why there is now such a large disparity between the relative payouts.
Many farmers will be waiting to see what profits Fonterra Australia posts for the 2009/10 season as a guide to how much their final milk price received has been held back by the lack of strong price setting competition in 2009/10.
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