FONTERRA Australia today announced it had revised its weighted average farmgate milk price for the 2021/2022 season to $6.85 per kgMS.

Fonterra Australia managing director René Dedoncker said when Fonterra announced its opening price on May 10, the company informed its farmers it would review the price in June.

“We came out with an early price four weeks ago to give our farmers a clear line of sight to help them plan for the season ahead, although some of our domestic and export contracts weren’t due to be settled until this week.

“We’ve now secured favourable outcomes for these contracts, particularly with our Japanese cheese customers, and over the past four weeks commodity prices have remained strong.

“Currency appears to have stabilised between 77-78 US cents, and our recent contracts have given us the ability to hedge a portion of our currency exposure at these levels for the first half,” Mr Dedoncker said.

The minimum price for 2021/22 has been adjusted and is set out in Fonterra’s base and seasonal rates tables and Milk Supply Agreements, which are available to farmers on Fonterra’s dedicated website at farmsource.com.au/pricing.