Fonterra's farmgate milk price out of step with efficiency

Thu, 14 Aug 2014

By Pattrick Smellie Aug. 15 (BusinessDesk) - The Commerce Commission says Fonterra Cooperative Group's decision to cut the last season's forecast payout to farmer shareholders by 55 cents per kilogram of milksolids below the result produced by its Farm Gate Milk Price calculation is not consistent with the milk price regime's intention to make Fonterra operate efficiently. However, it says the decision - the first ever taken to vary the payout from the calculated level since the Farm Gate Milk Price regime came into force in 2009 - was co...

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