Fonterra Australia today announced the additional support measures for its autumn-calving suppliers.
These measures aim to balance up the support to suppliers on an autumn-calving structure, who are disproportionately affected by the farmgate price reduction.
Fonterra Oceania MD Judith Swales said Fonterra had spoken with many farmers since its announcement last week and had heard their concerns regarding the impact on autumn calving, and it was appropriate to address the imbalance.
“Although the reduction in the farmgate milk price affects all farmers, we recognise that it has a greater impact on suppliers with autumn-calving herds given the reduction has had to happen late in the season and we need something that is fair across all our farmers.
“We have consulted with BSC to better target autumn-calving suppliers, by providing an additional autumn offset to farmers for milk supplied in May and June 2016. The package will go some way towards rebalancing the spring versus autumn seasonal incentives for FY17.”
The offset will provide autumn-calving suppliers an additional $2.50 a kilogram milk solids in July and August payments based on the kgMS a farmer supplies in May and June 2016. This will effectively be drawn through the redistribution of base rates in the 2016/17 season.
“We know the events of the last few weeks are incredibly tough on dairyfarmers,» Ms Swales said.
«We are listening and we know that changes need to be made. Our priority is to support all our farmers, act fairly, and continue to operate responsibly and transparently so that we have a sustainable Australian dairy industry.”
These measures aim to balance up the support to suppliers on an autumn-calving structure, who are disproportionately affected by the farmgate price reduction.
Fonterra Oceania MD Judith Swales said Fonterra had spoken with many farmers since its announcement last week and had heard their concerns regarding the impact on autumn calving, and it was appropriate to address the imbalance.
“Although the reduction in the farmgate milk price affects all farmers, we recognise that it has a greater impact on suppliers with autumn-calving herds given the reduction has had to happen late in the season and we need something that is fair across all our farmers.
“We have consulted with BSC to better target autumn-calving suppliers, by providing an additional autumn offset to farmers for milk supplied in May and June 2016. The package will go some way towards rebalancing the spring versus autumn seasonal incentives for FY17.”
The offset will provide autumn-calving suppliers an additional $2.50 a kilogram milk solids in July and August payments based on the kgMS a farmer supplies in May and June 2016. This will effectively be drawn through the redistribution of base rates in the 2016/17 season.
“We know the events of the last few weeks are incredibly tough on dairyfarmers,» Ms Swales said.
«We are listening and we know that changes need to be made. Our priority is to support all our farmers, act fairly, and continue to operate responsibly and transparently so that we have a sustainable Australian dairy industry.”
