Even though Fonterra has escaped court action by the competition authorities over last year’s milk price cut, it will still be forced to repay farmers this money under its milk supply contract with Bonlac. Bonlac Supply Company acts as an agent for milk supply to Fonterra Australia.
Under its milk supply contract with Bonlac, Fonterra signed up to match or top the farmgate price paid by rival Co-op Murray Goulburn.
Fonterra followed Murray Goulburn with the milk price cut when MG slashed their milk price last year, but was forced to do a u-turn last week as it is facing legal challenges from the Competition and Consumer Commission for cutting milk prices retrospectively. MG has now increased the average milk price it paid to its farmers for the 2015-2016 season to $5.53/kg milk solids (28.31 c/l).
ADVERTISEMENT
Fonterra cut its milk price to farmers from $5.75 to $5/kg milk solids (29.44 to 25.60c/l) for the 2015-2016 season, but in order to make an average milk price of $5 for the whole season, it reduced its milk price to $1.91/kg (10 c/l) for the last two months.
Under the terms of the Fonterra agreement with Bonlac, Fonterra has no choice but to repay its farmers under a voluntary deal or face a court battle where Melbourne lawyer David Burstyner claims he had more than 200 farmers willing to fund the court case.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Even though Fonterra has escaped court action by the competition authorities over last year’s milk price cut, it will still be forced to repay farmers this money under its milk supply contract with Bonlac. Bonlac Supply Company acts as an agent for milk supply to Fonterra Australia.
Under its milk supply contract with Bonlac, Fonterra signed up to match or top the farmgate price paid by rival Co-op Murray Goulburn.
Fonterra followed Murray Goulburn with the milk price cut when MG slashed their milk price last year, but was forced to do a u-turn last week as it is facing legal challenges from the Competition and Consumer Commission for cutting milk prices retrospectively. MG has now increased the average milk price it paid to its farmers for the 2015-2016 season to $5.53/kg milk solids (28.31 c/l).
Fonterra cut its milk price to farmers from $5.75 to $5/kg milk solids (29.44 to 25.60c/l) for the 2015-2016 season, but in order to make an average milk price of $5 for the whole season, it reduced its milk price to $1.91/kg (10 c/l) for the last two months.
Under the terms of the Fonterra agreement with Bonlac, Fonterra has no choice but to repay its farmers under a voluntary deal or face a court battle where Melbourne lawyer David Burstyner claims he had more than 200 farmers willing to fund the court case.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS