According to Fonterra's recent payout announcement Hawke's Bay farmers are in for a potentially profitable season ahead. Photo / File
According to Fonterra's recent payout announcement Hawke's Bay farmers are in for a potentially profitable season ahead. Photo / File
The Hawke's Bay dairy industry is set for an $131 million payout from Fonterra.
Fonterra increased the forecast price by 25 cents to $7.30 per kgMS on the back of good prices for its milk, resulting in a strong start to 2020 for the dairy giant.
The forecast farmgate milkprice range is between $7 and $7.60 per kgMS.
Based on the roughly 18 million kg of milk solids Hawke's Bay dairy farmers supply to Fonterra each year, they will earn $131m if the final payout price remains at $7.30 for the 2019/20 season.
That will be a huge boost to this season, if all things go well, after an earlier estimate placed the payout at approximately $118m.
Dannevirke dairy farmer and Fonterra Shareholder Council representative for Hawke's Bay Andrew Hardie said after a couple years of up and downs for Fonterra farmers the future ahead is looking bright.
"It has been a bit of a mix and match couple of years for Fonterra farmers with a couple poor investments made by the company, but looking forward it is looking like it will be some strong returns and payouts for farmers."
Hardie was elected to the Shareholders' Council in 2015 to represent Fonterra Farmers in Hawke's Bay.
Fonterra is the region's only pasteurised milk supplier, with no smaller supplier options.
Fonterra Shareholder Council representative for Hawke's Bay, Andrew Hardie said the farming industry as a whole was looking strong in the region. Photo / File
Hardie warned farmers to not just "splash the cash" but also pay off some of the debts and bills that have built up over the past few years.
Although dairy is looking strong, Hardie said it isn't the only farming industry doing well in Hawke's Bay.
"Farming is a strong industry at the moment," he said.
"It is a thriving industry with not only dairy, which is seeing a regional rise of 1.5 per cent in milk produced, but those in stock farming, wool, horticulture, it's all looking strong."
