Fonterra announce 2014/15 opening price

DAIRY farmers suppling Fonterra will gain $5.80 per kilogram of milk solids after the processor revealed its opening price.

The New Zealand-based company is the first to declare its price for the new financial year, with rivals Murray Goulburn and Warrnambool Cheese expected to follow soon.

Fonterra is forecasting a closing range of $6.10 to $6.30 a kilogram for milk solids by June 2015.

Fonterra managing director Judith Swales said the announcement continued the company’s price leadership from the 2013/14 season into the next.

She said market factors will continue to impact prices through the 2014/15 season.

“The global environment remains volatile and is evolving rapidly," Ms Swales said.

"We have recently seen global commodity prices decrease due to increased global production and our currency has appreciated. But, demand from key importing countries remains strong."

Bonlac Supply Company chairman Tony Marwood said the group welcomed the announcement.

“It’s great to see Fonterra Australia open with a strong price again this year," he said.

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