Fonterra announces step-up

The payment will be made on February 15.

The increase comprises 13¢/kg of butterfat and 18¢/kg of protein.

Fonterra Australia managing director Rene Dedoncker said capturing strong commodity prices for cheese contracts in the first half of the year had enabled the company to deliver this step-up, and despite lower than forecast milk collections and inflationary pressures, demand for their domestic brands and products remained strong and their Australian business continued to perform well.

“As always, we will continue to watch the market closely and will keep you updated on market conditions as we round out the season,’’ Mr Dedoncker told suppliers in a letter.

The company’s half-year results will be announced on March 16.