This is a subscriber-only article
Westland's new price will range between $4.55 and $4.95/kg milk solids (22.5-24.5c/l).
The co-op’s chair, Matt O’Regan, said in a statement that the increase came as a result of the recent uplift in international dairy prices for the range of products that Westland produces, along with this month’s positive Global Dairy Trade auction results.
He went on to say the advance rate payable on September had been approved at $3.80/kg (18.80c/l).
O’Regan also said that, despite the higher forecast, the NZ dollar exchange rate continued to be a challenge, along with the short-term oversupply coming from international dairy markets.
As previously reported, Fonterra's forecast milk price of $4.75 plus a 50c share dividend will deliver a milk price equivalent to almost 26c/l in euro terms.
The cost of production in New Zealand is around $5.05/kg (25c/l) .
Milk processors in the UK increase prices
Dairy Trends: Dairy commodity prices continue upward trend
SHARING OPTIONS: