The FEI threshold had been moved from 8 to 9, above which farmers would have 10% (grade C) and 20% (grade D) payment deductions.
Milk graded C or D for three consecutive days would be retested before demerits would be applied, Fonterra’s regional Farm Source head Lisa Payne said.
After consultation the changes made to the grading system were increases to the FEI levels in all four grades.
A grade now went up to 7.5, B grade was 7.5 to 9, C grade was 9.1 to 11 and D grade greater than 11.
Farmers would have until September 2018, three months longer than originally announced, to make any necessary adjustments before demerits were applied.
The delay was to enable winter milkers to have a full season of evaluation, a Fonterra spokesman said.
The changes in FEI levels within the grades were to help farmers to meet the required standard through changes in the diet composition of cows.
“They will make minor onfarm fluctuations and screen variations less influential than originally proposed,” he said.
The historical results for each farm, going back to January this year, would now be adjusted to the new grading scale, accessible through the On Farm app.
Some farmers who previously received a C grade might now find their results in the acceptable band.
While feeding cows with palm kernel was the key influencer of the FEI, other onfarm factors including breed, stage of lactation and other feeds also influenced milk’s fat composition.
The advent of a long, hot summer with an increasing need for palm kernel supplementation was not a factor in the timing of the announcement or the delay in implementation.
The FEI scheme would not be suspended because of extreme weather but Fonterra could nullify the penalties if the board decided the circumstances were appropriate to do so.
“Farmers will have had 21 months to make any onfarm adjustments before demerits are applied. They are encouraged to use this time to plan ahead for adverse weather events.”
Perhaps palm kernel feeding could be directed more to non-lactating cows and young stock, freeing up pasture, silage and maize for lactating cows, Fonterra suggested.
