Fonterra open applications for Guaranteed Milk Price

Published 3 June 15

Fonterra have announced the Guaranteed Milk Prices (GMP) available for the 2015/16 season, available on up to 60 million kilograms of milk solids (kgMS). Farmers will have opportunities in June and December to lock in a price for between 10% and 75% of their estimated production. Applications can be made to supply milk volumes across a range of prices between Fonterra’s 2015/16 forecasted milk price of $5.25/kgMS and $4.85/kgMS (between 18.6ppl and 17.2ppl).

The GMP programme has been offered by Fonterra since 2013/14.  While the programme only offers a guaranteed price on less than 4% of its total milk supply, it offers farmers a financial tool to help manage their profit margins and give better income certainty.