This episode featured as part of the Agribusiness segment in partnership with BNZ.
Dairy farmers can now fix the price of their physical milk from an app, a world-first tool from global supply chain company Czarnikow. General manager of NZ at Czarnikow (CZ), Tom Soutter, says it is already in use in New Zealand.
“This is already being used by farmers now, so it is happening,” he says.
Developed with an unnamed New Zealand processor, the tool lets farmers lock in up to 50% of their expected milk solids for the season at a price they can watch change through the day.
“We can’t give advice as to whether it’s a good time to fix some milk or not.”
It carries no margin calls, with adjustments made through the monthly milk-cheque cycle, and its nine-cent cost sits below that of the Farmer Fixed Milk Price programme.
Czarnikow, founded in the 1860s, has run a similar scheme for UK and European sugar beet growers since 2020.
This episode featured as part of the Agribusiness segment in partnership with BNZ.
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