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Fonterra Cooperative Group will start making paying its farmers for being sustainable and creating high-quality milk. Up to 10c/kgMS of its farmgate milk price will be known as a ‘cooperative difference payment’ and will be paid to farmers that meet the cooperative’s sustainability and value targets. Chief Executive Miles Hurrell states that they have always paid farmers based on the value that their milk provides and states that the drivers of value are changing, hence the shift. Mr Hurrell reported that it makes sense to financially reward farmers who are willing to go the extra mile and create high-quality sustainable milk.
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