FONTERRA Australia has backpedalled on Monday’s pricing announcements, and has now revised its weighted average opening price to $6.40 per kgMS and forecast a closing range of $6.40 – $6.70 per kgMS for the 2020/21 season.

On Monday, Fonterra announced an opening price of $6.06 and estimated a closing price range of $6.30 to $6.70.

Managing director of Fonterra Australia, René Dedoncker, said Fonterra had kept in line with industry convention to open at a price lower than the full-year forecast, with the understanding that step-ups would be paid throughout the season where the market supports it.

“Clearly though, our opening price needs to be competitive. We said we would review our pricing in June, and we have brought this forward due to the competitive environment we are in, which is what is driving this price.

“Our revised opening price fits at the lower end of our original full-year forecast and is aligned with our business plans for the year ahead.

“On Monday we said that the impact of COVID-19 on economies and the market is still largely unknown and will be uncertain for some time. Consumers’ purchasing power is reduced and the foodservice industry remains impacted. This holds true today,” he said last Wednesday.

The minimum price, as set out in Fonterra’s base and seasonal rates table, has been adjusted to reflect this revised pricing, and is available to farmers on Fonterra’s dedicated website at www.farmsource.com.au/pricing.