Fonterra's milk pricing scheme for farmers

摘要

New Zealand dairy giant Fonterra is piloting a new 'Guaranteed Milk Price' (GMP) scheme that will provide farmers with the opportunity to have more certainty in the milk price. The pilot will mean farmers can choose to lock in a milk price announced at the beginning of a season for up to 75% of their milk supply. Fonterra's managing director of group optimisation and supply chain, lan Pal-liser, says the past few years have confirmed that volatility in commodity prices is here to stay. "We recognise that every farming business is different. And while most farmers can live with the market volatility, there are times when some farmers would prefer more certainty as it would help them manage their own farming businesses," Palliser says.