Fonterra will introduce a new financial tool to help their farmers gain more certainty about what they will be paid for their milk for the season.
The new Fixed Milk Price can help them with budgeting, planning, and managing on-farm profitability. Fixed Milk Price joins a set of 7 innovative financial tools to assist farmers in sharing up and investing in their farms. These tools include:
In the development of this new tool, Fonterra incorporated feedback from its farmers on previous pricing tools and ensured that Fixed Milk Price is more transparent, flexible and accessible. How it will work:
Farmers were also updated today on the Co-op’s plans to provide them with more meaningful recognition and rewards in season 2019/2020 for producing high quality, safe, sustainable dairy.
Once all input is received, the new approach will be finalised for introduction in June 2019.