Fonterra Australia has announced a move towards a simpler milk pricing structure.April 23, 2014 3:01am
Fonterra Australia has announced a move towards a simpler milk pricing structure.
Multiple seasonal tables will be reduced to one, the growth incentive will disappear and the money moved into the base price and the seasonal ratio payment will be removed.
The SRP was originally introduced in 2008 to reward farmers who supplied milk outside the spring peak.
Fonterra Australia managing director Judith Swales said they were responding to calls from farmers and the industry for a simpler milk price system for farm profitability and easier decision making on-farm.
‘‘We listened to that feedback and agreed we needed to actually do something to lead the industry forward,’’ Ms Swales said.
‘‘The new system is simpler, fairer, equitable, and more transparent. It will reduce the range of prices paid to farmers against the average and will help them understand the impact milk price and incentives have on their farm businesses so they can make more informed decisions on-farm.’’
Production payments will remain according to their current terms and the overall milk pool will stay the same, with additional investment being made into growth and cash flow.
Bonlac Supply Company chairman Tony Marwood said the new system would make it easier for farmers to understand their milk price and would assist them in making informed decisions.
The company used independent farm consultant John Mulvany, to develop the new approach.
‘‘My research confirmed that complexity in milk pricing doesn’t support good, profitable decision making on-farm,’’ Mr Mulvaney said.
‘‘Some farmers confuse a high cost of production with out-of-season milk, but some farmers simply produce milk at much lower costs than others.’’
Organisers of the Challenge Shepparton triathlon will donate half the entry fees from entrants in the ‘community team challenge’ to the Community Fund Goulburn Valley.
Jake Thompson has an eagle eye and a steady hand and he put both to good use recently when he won the U15 Australian Snooker Championships, held in Adelaide.
The Aboriginal and wider community is mourning the death of revered Bangerang Aboriginal elder, Uncle John ‘‘Sandy’’ Atkinson.
COMMITTEE for Echuca Moama revealed Monash University as the consultant for its homeless reference group on Friday last week, reinvigorating one of the committee’s key strategies; to combat Echuca-Moama’s homelessness.
PLANS are in full swing for the 18th annual Farm and Road Safety Expo in Rochester.
Merrigum’s rise to prominence in the Kyabram District League premiership battle reached new heights in Saturday’s 16th round when it became the first side to lower Avenel’s colours this season.
Local export Willie Wheeler dominating at VFL level
Berrigan Shire councillor Daryll Morris says he has been sickened by some of the vitriol and personal attacks to surface since the council’s proposal to redevelop Finley’s Memorial Hall and School of Arts site was revealed in October last year.
HEATHCOTE is being swamped by Pokémon and wannabe trainers, armed with smart phones and iPads, who are trying to catch ‘em all.
Children have been treated to a journey through their imaginations while being encouraged to unleash their inner writers at Barooga Library.
Sixteen local students competed at the NSW PSSA and CHS State Cross Country Championships in Sydney.
SPC will abolish its internal sales team and reduce executive numbers in the latest chapter of the company’s ongoing restructuring.
The News magazines are online - read high quality magazines in your time. Check in regularly for the latest editions.
Riverine Herald's well regarded locally produced magazines. They're now online, so you can read them whenever and wherever you like.
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.