Farmers call on co-ops to maintain milk prices after Fonterra index rise

Dairy farmers are contacting regional co-ops today to urge them to retain current milk prices on foot of a huge upturn in price at yesterday’s Fonterra dairy auction.

Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers 30 dairy products and contract periods, yesterday unveiled a 13.5% average rise in dairy prices. Fonterra’s butteroil (or ‘AMF’) price was up 24.4%, while skimmed milk was up 21.3%.

Yesterday’s upturn comes after two months of falling prices on New Zealand-based Fonterra’s global index. Those two negative months also coincided with the annual results season for Irish dairy co-ops, each of which has predicted that milk prices will fall by 20-25% during 2012.