Fonterra raises opening price for the 2021-22 season

Australia’s big three dairy processors have now all stepped up their opening prices for the new season — with less than a week to go.

Fonterra has raised opening prices ahead of the 2021-22 season. Picture: Andy Rogers

Fonterra has lifted its opening price by 10 cents as Australia’s processors count down the days before the 2021-22 season.

The Auckland-based processor has confirmed an average weighted price of $6.95/kg milk solids, up from the $6.55/kg milk solids figure initially offered last month.

The $6.55/kg figure was confirmed on the June 1 mandatory code of conduct deadline, then raised to $6.85/kg only days later.

Fonterra Australia managing director René Dedoncker the rise in the average farmgate milk price comprised of 8c/kg for butterfat and 11c/kg of protein.

“The price rise to $6.95/kg milk solids takes us to the top end of the forecast range we provided when we opened on 10 May, and reflects our commitment to supporting our farmers and paying a competitive milk price,” he said.

The announcement by Fonterra comes only days after Saputo also raised its opening price to an average of $6.95/kg milk solids.

Earlier this week, Saputo supplier relations director Anthony Cook said: “We are committed to reviewing our minimum milk price to ensure our pricing remains competitive.

Last week, Bulla confirmed a third pre-season step up to its minimum price.

The Colac-based processor lifted its opening price range to $6.85/kg-$7.35/kg milk solids, up 15c/kg across its four supplier price categories.

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