The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / The Country

Fonterra's cash-strapped Aussie farmers

Jamie Gray
By Jamie Gray
Business Reporter·NZ Herald·
10 May, 2017 06:20 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Australian farmers would be paid A$5.70/kg to A$6.10/kg milk price for the 2017/8 season.

Australian farmers would be paid A$5.70/kg to A$6.10/kg milk price for the 2017/8 season.

Fonterra said it aimed to pay its cash-strapped Australian farmers a A$5.70/kg to A$6.10/kg milk price for the 2017/8 season and would reimburse suppliers interest paid for last year's support loans after discussions with its key supplier, Bonlac Milk Supply, in Melbourne.

The co-operative said its forecast full year farmgate milk price range of A$5.30 to A$5.70 per kg of milk solids, would include additional payment of 40c per kg of milksolids.

Fonterra Australia managing director René Dedoncker said the business was in a stronger position, which underpinned its forecast for the year.

"Providing Fonterra's forecast full year price range now is aimed at giving our farmers guidance so that they can plan for next season with confidence," he said in a statement.

"We said that we would consider Murray Goulburn's recent announcements including the decision to forgive its Milk Supply Support Package. We've consulted with the Bonlac Supply Company on the best way to respond to our suppliers," he said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Fonterra will also reimburse the interest charge for the Fonterra Australia Support Loans package that was included in this season's milk price to all current suppliers.

"We believe this payment is the right thing to do and we're committed to ensuring our farmers are better off by partnering with us," he said.

Fonterra had met with Bonlac after Murray Goulburn - Fonterra's main competitor across the Tasman - decided to dissolve a controversial scheme that was aimed at clawing back milk payments from Aussie farmers.

Advertisement
Advertise with NZME.

All future repayments to scheme - which were to recommence from this July - would cease, Murray Goulburn said last week. The company would also make a payment to continuing and retired suppliers who had made scheme contributions between July and September last year.

Fonterra, under its supply agreement with Bonlac, has to match or better Murray Goulburn's milk price.

The New Zealand co-op had last year complained that Murray Goulburn was paying unrealistically milk prices at a time when world prices were depressed.

The bubble burst in April last year when Murray Goulburn slashed its A$5.60 per kilogram of milksolids farmgate milk price, which meant Fonterra could follow suit.

Discover more

Agribusiness

Dairy finds its happy place

11 May 06:14 PM

Fonterra has for years lost money in Australia and the last two have been particularly difficult as the co-op was forced to match its larger Aussie competitor's high milk price.

The New Zealand co-op has only recently returned to profitability across the Tasman.
Australia is a significant market for Fonterra and it is the co-op's second biggest milk pool after New Zealand, and represents close to 20 per cent of Australia's total milk supply.

Last month, the Australian Competition and Consumer Commission filed Federal Court proceedings against Murray Goulburn over last year's milk price announcements.

Australian media last week speculated that recompensing Aussie farmers could cost Fonterra up to A$60 million.

Save

    Share this article

Latest from Dairy

The Country

How NZ is tackling worker protection issues in the primary industries

Premium
The Country

Market close: NZ shares flat as Australian regulator clears path for Fonterra consumer sale

Dairy

‘Great guns’: Dairy livestock market heats up as calf demand rises


Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

Advertisement
Advertise with NZME.

Latest from Dairy

How NZ is tackling worker protection issues in the primary industries
The Country

How NZ is tackling worker protection issues in the primary industries

NZ officials are confident in worker protection as Australian breaches surface.

10 Jul 10:30 PM
Premium
Premium
Market close: NZ shares flat as Australian regulator clears path for Fonterra consumer sale
The Country

Market close: NZ shares flat as Australian regulator clears path for Fonterra consumer sale

10 Jul 06:22 AM
‘Great guns’: Dairy livestock market heats up as calf demand rises
Dairy

‘Great guns’: Dairy livestock market heats up as calf demand rises

10 Jul 03:37 AM


Solar bat monitors uncover secrets of Auckland’s night sky
Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

06 Jul 09:47 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP