Co-ops supporting farmers through challenging times

Published 24 August 15

In light of the challenging global market conditions, we are starting to see some examples of where co-ops are looking to provide financial support for farmers.

The most recent example of this is Fonterra which last week announced details of an income support loan which will result in farmers receiving an extra 50c/kgMS on top of the forecast price for the next season of $3.85 or approximately 12p/litre. It is expected that this scheme could cost $800 million if it runs all season, with farmer loans being repaid once the milk price exceeds $6/kgMS.

In Ireland, Glanbia co-op has supported the milk price in recent months by providing a top-up to the price paid by Glanbia Ingredients Ireland, which meant an extra 1.5c/l for July milk.