Fonterra increases milk price

Dairy giant Fonterra has announced a four per cent increase in its wholesale milk purchasing price.

The increase to 31 cents a litre will be back-dated to 1 July and applies to the company’s 1000 Victorian suppliers.

Many dairy farmers have struggled to stay viable because of the drought, as well as milk price cuts caused by the financial downturn.

But Fonterra’s spokeswoman Heather Stacy says the company is expecting global markets to increase next year.

“We’re starting to see demand post-Christmas strengthen so we’ll really keep an eye on our sales going forward,” she said.

“It’s still subject to the Australian dollar going forward as well, so that continues to be a major challenge.”

Source: ABC

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