Bonlac Supply Company welcomes Fonterra Australia opening price and forecast full year range for season 2017/18

14th July 2017

The Bonlac Supply Company has welcomed Fonterra Australia’s opening price of $5.30 per kilogram of milk solids (kgMS) and upgraded forecast full year range of $5.40-$5.80kgMS for season 2017/18.

Bonlac Supply Company Chair Tony Marwood said the price and forecast full year range were an important step in restoring farmer confidence and profitability for farmers’ businesses, and that Fonterra’s opening price of $5.30kgMS plus an additional 40 cents kgMS means farmers will receive $5.70kgMS from start of the 2017/18 season.

“Over the last 12 months the BSC has changed the way we work with Fonterra to ensure our farmers’ views form a greater part of milk price discussions,” said Tony. 

“We know that we will be judged on our performance going forward and how well we deliver on our promise to represent farmers. A key priority for our farmers is receiving early price information so that we can plan ahead with confidence."

Fonterra was the first processor to give an indication of price this season with the announcement of its forecast range four weeks ago, demonstrating their commitment to improving the way they communicate with farmers.

The BSC also confirmed that it no longer sees the current Benchmark Agreement against the largest Victorian processor Murray Goulburn as appropriate in today's Australian dairy market, and that they are progressing towards a new milk price model for the 2017/18 season and beyond.

“Fonterra has shown that it is running its own race by setting a price based on its own product mix and what that mix earns in the market. Now is the right time to review the benchmark obligation,” said Tony “We’ve been working with Fonterra on a new price mechanism that will give farmers greater clarity as to how their price is set, and we look forward to sharing that with farmers at the July supplier meetings.”

ENDS

 

Tony Marwood
BSC Chair
0428 838 632

Will Kermode
BSC Company Secretary
0409 232 992