Bonlac Supply Company welcomes Fonterra Australia’s 20c increase in farmgate milk price for season 2017/18

The Bonlac Supply Company welcomes Fonterra Australia’s 20c increase per kilogram of milk solids (kgMS) for season 2017/18.

Bonlac Supply Company Chair Tony Marwood said this early season step up was an important step in helping to restore our farmers’ confidence and the profitability of our businesses.

“Whilst there has been no increase to the top end of the end of year forecast range of $5.80, we are very pleased with Fonterra’s willingness to step up this early in the season,” said Tony.

“Over the last 6 months, BSC has begun to change the way we work with Fonterra to ensure our farmers’ views form a greater part of the bi-monthly milk price discussions." Fonterra has welcomed the farmer voice and this is contributing to mutual decisions.

”It’s critical to our cash flows and profitability that we not only receive the best possible price that is reflective of the market, but that we receive it as early as possible. With announcements such as this, we can plan ahead with increased confidence."

“We also would like to reconfirm that BSC no longer sees the current Benchmark Agreement against the largest Victorian processor Murray Goulburn as appropriate in today's Australian dairy market” says Tony.

“We know that as your voice, we at BSC are judged on our performance and how well we deliver on our promise to represent farmers."

“Our involvement with Fonterra on this most recent price review is just one of a number of steps BSC has underway in progressing towards a new and improved farmer representation model.”

ENDS

 

Tony Marwood

BSC Chair

0428 838 632

 

Will Kermode

BSC Company Secretary

0409 232 992