Dairy processor Fonterra has told its Victorian and Tasmanian suppliers that it wants more milk but is going to pay less for it.
The company says due to falling global prices there will be a drop by over 55 cents a kilogram for milk solids in it's farm gate milk price.
Managing Director Simon Bromell says despite this the company wants more milk.
"So the signals we get from our customers as we look into 2013 are strong demand signals."
"There is a short term lull if you like but certainly our demand signals are fairly strong."
"So strong in fact that we're talking about the need for a further one hundred million litres of milk in our business to meet demand that we can already foresee from our customers."
The move in Australia follows falling farm gate prices for dairy farmers in New Zealand
Source: ABC Rural |
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