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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news