MIL OSI – APPLICATIONS OPEN FOR FONTERRA FARMERS TO LOCK IN GUARANTEED MILK PRICE
Following last week’s announcement of the 2015/16 forecast Farmgate Milk Price, applications are now open for Fonterra farmers to lock in a Guaranteed Milk Price (GMP) for a percentage of their milk.
There are two opportunities in the 2015/16 season to secure a GMP on 60 million kgMS – up to 40 million kgMS is available in June, and up to 20 million kgMS will be available in December. Farmers who are looking for a GMP can now apply to supply some of their estimated milk production across one or more of five prices ($5.25, $5.15, $5.05, $4.95, and $4.85) at and below the 2015/16 forecast Farmgate Milk Price.
The application period runs until 5pm on Friday, 19 June. Once the applications close, the total kgMS offered by all applicants at each price will be totalled. Allocations will be made based on the prices at which milk solids were offered from the lowest price up and the GMP will be determined at the highest price at which a total quantity of milk solids in a specified range is reached.
Fonterra’s Head of Origination, Arron Atkinson, said farmers have the option to apply their volumes across one or more of five prices at and below the 2015/16 forecast Farmgate Milk Price. This process allows for the prioritisation of allocation in the event that the GMP is oversubscribed.
“All accepted applications will receive the same Guaranteed Milk Price. However, it’s important to note that depending on the total milk solids offered at each price, some farmers may not get all or any of the volume they offered,” he said.
For applications made in June, farmers can apply to fix a GMP for between 10 per cent and 75 per cent of their estimated milk production for the 2015/16 season.
The second GMP opportunity will be available in December for production supplied 1 December 2015 to 31 May 2016.
Applications can be made online via Farm Source or interested farmers can request an application pack from Fonterra’s Supplier Services team on 0800 65 65 68.