Fonterra has opened applications for its farmer-shareholders to lock in a price for a percentage of their milk under the Guaranteed Milk Price programme.
The GMP, piloted last season, was designed to give farmers more flexibility to help manage the effects of commodity price volatility and give greater income certainty.
The announcement comes a week after Fonterra announced a new season's opening forecast of $7 per kg milksolid.
Fonterra is offering farmers two opportunities in the new season to secure a GMP on 60 million kg MS - up to 40 million kg MS is available in June, and up to 20 million kg MS is available in December.
There was also a new approach to determine each GMP and allocate the available volume.
Farmers who were looking for a GMP could offer a percentage of their estimated milk production across five prices - $6.60, $6.70, $6.80, $6.90, and $7, Fonterra's director of milk supply, Steve Murphy, said.
- Waikato Times