Westland suppliers can look forward to a price range of $5.60-$6.00 per kilo of milk solids (kg/MS) next season, it was announced yesterday.
This includes a higher advanced payout of $4.40 per kg/ms to help farm cash flow.
Meanwhile, prices remain unchanged this season at NZ$4.90-$5.10 per kg/ms.
A matrix of factors, namely; Russian sanctions, lower Chinese demand and EU milk quota removal has put the market in “unchartered territory”, admitted Westland chief executive, Rod Quin.
Justifying the price rise, he said: “While it might be more optimistic than some in the New Zealand dairy industry, it is our considered forecast of the expected outcomes for the approaching season.”
Westland anticipates a price recovery later in the year, but not in any big way.
Fonterra Australia suppliers can expect a minimum weighted price of $5.54 per kilograms of milk solids, which was announced on Friday.
The dairy giant is offering a fixed base milk price equivalent to a weighted average of $5.80 kg/MS. Its producers have been told they have “greater certainty” with this range of prices and have been given the “ability to manage price volatility”.
