Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Applications Open for Fonterra Farmers to Lock in Price

Applications Open for Fonterra Farmers to Lock in Guaranteed Milk Price

Following last week's announcement of the 2014/15 forecast Farmgate Milk Price, applications are now open for Fonterra farmers to lock in a price for a percentage of their milk.

Building on the success of the Guaranteed Milk Price (GMP) pilot in the 2013/14 season, Fonterra has further developed the programme to give farmers even more flexibility to help manage the effects of commodity price volatility and give greater income certainty.

There will now be two opportunities in the 2014/15 season to secure a GMP on 60 million kgMS - up to 40 million kgMS is available in June, and up to 20 million kgMS is available in December. There is also a new approach to determine each GMP and allocate the available volume.

Fonterra's Director of Milk Supply, Steve Murphy, said with the new season's opening forecast Farmgate Milk Price announced at $7 per kgMS, farmers who are looking for a GMP can now offer a percentage of their estimated milk production across one or more of five prices ($6.60, $6.70, $6.80, $6.90, and $7) at and below the forecast Farmgate Milk Price.

"The pilot that we ran last season attracted such a high level of support that we had to scale offers back to 40 per cent of the original applications. At the time, many farmers were disappointed that their quantity was reduced," he said.

"In the event of over-subscription this season, applications will not be scaled back pro-rata across all volumes of milksolids. Instead, we have introduced a new process so that farmers who really want some certainty on their Milk Price can now have the flexibility to weigh up how many milksolids they are willing to offer at one or more of the five prices".

Once the applications close, the total kgMS offered by all applicants at each price will be totalled. Allocations will be made based on the prices at which milksolids were offered from the lowest price up and the GMP will be determined at the highest price at which the total quantity of milksolids offered reaches the specified limit.

All accepted applications will receive the same Guaranteed Milk Price, the June GMP or the December GMP. However, even with this new approach, depending on the total milksolids offered at each price, some farmers may not get all or any of the volume they offer.

For applications made in June, farmers can apply to fix a GMP for between 10 per cent and 75 per cent of their estimated milk production for the 2014/15 season. Farmers have until 20 June to apply.

The second GMP opportunity will be available in December for production supplied 1 December 2014 to 31 May 2015.

Applications can be made online via Fencepost or interested farmers can request an application pack from Fonterra's Supplier Services team on 0800 65 65 68.

- ENDS -

© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news