Friday, March 29, 2024

Small rise in winter milk

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Winter milk pick-ups, for which Fonterra pays attractive premium prices, have begun in Waikato, Northland and Canterbury.
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The contract season runs from May 16 to July 15 in the North Island and from June 1 to July 31 in the South Island.

In all, 850 supply farms have winter contracts for specified amounts so Fonterra can meet its domestic liquid milk market and export product requirements, such as UHT cream at Waitoa and mozzarella cheese at Clandeboye.

After the volume was increased a couple of years ago supply requirements are stable and there have been no changes to structure and payments, a Fonterra spokesperson said.

Premium payments are $2.85/kg milksolids for the first and last fortnights of the contract in the North Island and $3.50 for 30 days in the middle.

The respective figures in the South Island are $3.50 and $4.25.

Fonterra also provides an uncontracted winter supply option at much lower rates under standard terms with no volume commitments.

It does not need to recruit greater contracted supplies this winter and has applied a 2% contract volume growth, the spokesman said.

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