Fonterra is to pay its farmers a top-up for meeting on-farm sustainability targets.
The top-up, a maximum of 0.6c/l, will come into effect from 1 June 2021 and is part of the co-op’s "strategy to add value to New Zealand milk”.
The payment will be funded out of the farmgate milk price.
Fonterra CEO Miles Hurrell said the total farmgate milk price will remain the same across the co-operative, but the amount that each individual farm is paid will vary depending on their contribution under the co-operative difference, in addition to the other variables, such as fat and protein, which impact the amount that’s paid.
The co-operative difference is a framework to help farmers produce high-quality, sustainable milk and prepare for any changes needed in the future.
How will it work?
The more a farmer achieves in the co-operative difference programme, the higher the payment will be. The precise payment structure will be confirmed over the next few months following discussions with farmers but will be no more than NZ$10c/kgMS or 0.6c/l.
Key details:
The amount and targets will be set annually by the Fonterra board.The payment will work on a tiered achievement system. The more a farmer completes in the co-operative difference, the higher the payment they’ll receive.The payment won’t be more than NZ$10c/kgMS (0.6/l) for the first season commencing 1 June 2021. Fonterra will work with farmers on the framework over the next few months to achieve the right balance.The total amount available to be paid to farmers does not change, but a proportion of the farmgate milk price will be available to be redistributed between farmers to better reflect the value of the milk from individual farms.
Read more
Dairy industry update: can New Zealand save the dairy world?
Fonterra: be ‘cautious’ on spending as milk prices set for fall
Fonterra is to pay its farmers a top-up for meeting on-farm sustainability targets.
The top-up, a maximum of 0.6c/l, will come into effect from 1 June 2021 and is part of the co-op’s "strategy to add value to New Zealand milk”.
The payment will be funded out of the farmgate milk price.
Fonterra CEO Miles Hurrell said the total farmgate milk price will remain the same across the co-operative, but the amount that each individual farm is paid will vary depending on their contribution under the co-operative difference, in addition to the other variables, such as fat and protein, which impact the amount that’s paid.
The co-operative difference is a framework to help farmers produce high-quality, sustainable milk and prepare for any changes needed in the future.
How will it work?
The more a farmer achieves in the co-operative difference programme, the higher the payment will be. The precise payment structure will be confirmed over the next few months following discussions with farmers but will be no more than NZ$10c/kgMS or 0.6c/l.
Key details:
The amount and targets will be set annually by the Fonterra board.The payment will work on a tiered achievement system. The more a farmer completes in the co-operative difference, the higher the payment they’ll receive.The payment won’t be more than NZ$10c/kgMS (0.6/l) for the first season commencing 1 June 2021. Fonterra will work with farmers on the framework over the next few months to achieve the right balance.The total amount available to be paid to farmers does not change, but a proportion of the farmgate milk price will be available to be redistributed between farmers to better reflect the value of the milk from individual farms. Read more
Dairy industry update: can New Zealand save the dairy world?
Fonterra: be ‘cautious’ on spending as milk prices set for fall
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