Grade-free suppliers allow Fonterra to meet its preferred customer status with product which can command a premium price.
Last week, 80 farmers from 49 dairy farms from Woodville to Gisborne attended the annual grade-free lunches in Dannevirke and Hastings.
"In this region 20 per cent of farms achieved grade-free status in the 2015/16 season. To achieve this, all milk supplied must be free from any tested defects, including bacteria and water," Tony Haslett, Hawke's Bay area manager for Fonterra said.
"Five farms were awarded the coveted gold grade-free status, which means they have gone four or more consecutive years grade-free."