In early December 2018, Fonterra announced the new Advance Rate Schedule that saw the December '18 base Advance Rate set at $4.00, down from the previous rate of $4.15.

Simply put, this means that farmers will be paid $4.00 for all milk solids supplied in the month of December 2018, less a deduction of 15 cents on all of their milk solids supplied between June-November inclusive that have been paid at the $4.15 level.

We've suggested a couple of options below on how you could display this correctly in your working or draft plans


Option 1 (recommended)

  • Using the extended code Last Season's (LS) open a worksheet with a payment date of January 2019 in your working or draft plan.  

    Enter the total kg/MS that was produced between Jun to Nov in January e.g. 52,000 x .15 = -$7,950.00

    Once January has finished, remove the amount you calculated for January from your plan.

Option 2

  • In the Dairy Forecaster, change the Base Adv Rate for supply months September - November from $4.15 to $4.00.  

    Everything will come out in the wash when the milk solids provided for the season to date are retrospectively paid in February.

Option 3

  • Create a new extended code under Milk Production for the Balancing Retro.
    Make sure you set the code type to Expense.

    Using the new extended code, open a worksheet with a payment date of January 2019 in your working or draft plan.

    Enter the total kg/MS that was produced between Jun to Nov in January e.g. 52,000 x .15 = -$7,950.00

    Finally, using the same extended code, enter the same amount as a credit in February.

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