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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news