Fonterra Australia has increased its farm gate milk price by seven cents per kilogram of milk solids (kgMS) for the 2018-19 season, bringing its average farm gate milk price to $6.05/kgMS.
The new average will apply from July 1, 2018 and was paid on February 15.
Fonterra Australia managing director René Dedoncker said the increase would help support its farmers who continued to face challenging conditions.
‘‘There have been some positive signs in global conditions, with recent improvements in Global Dairy Trade prices and the clearing of SMP (skim milk powder) stockpiles in Europe,’’ he said.
‘‘However, Australian production continues to decline due to drought and high input costs.
‘‘This is leading to increased competition across our dairy regions, particularly in northern Victoria.
‘‘Rising costs for feed and water continue to be a challenge for our farmers, and we hope this price increase helps to ease some of the pressure for the remainder of the season.
‘‘We will continue to monitor currency and global dairy prices and keep our farmers updated throughout the season.’’