Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be cautiously optimistic following the announcement by Fonterra of an opening forecast Milk Price for the 2015/16 season of $5.25 per kg/MS, including an opening advance rate of $3.66 per kg/MS.
Brown said: “Farmers will view next season’s forecast as a positive given the situation we have experienced this past season. They will also see the announcement as a signal from their Board that the market should start to move in a positive direction in the near future, which is welcome news.
“However, all Farmers are by now very well-versed in the realities of volatility in our industry and this needs to be front of mind for them as they work through their budgets.
“While acknowledging this volatility Farmers will be expecting their Co-op to communicate any significant price fluctuations that occur throughout the season in a transparent and timely manner.”
Brown also commented on Fonterra’s latest reduction of this season’s forecast Milk Price to $4.40 per kg/MS. “The number remains a disappointing one and Farmers are keen to put this season behind them and move on to the next. I ask that Farmers stay engaged with their Co-op throughout the season and continue to exercise real prudence in their financial planning.”
About the Fonterra Shareholders’ Council
The Fonterra Shareholders’ Council represents the interests and views of Fonterra Farmers to the Board of the Co-operative and plays an active role in monitoring and assessing the governance and performance of Fonterra. There are 35 Councillors who are all Shareholders elected by their fellow Farmers in wards across New Zealand.