Otago Daily Times reports two of the largest dairy companies in the world have increased their advanced milk payments made to dairy farmers and suppliers.

Open County Dairy increased milk payments three weeks ago, its global competitor Fonterra increased its advance payments a week later. Fonterra chairman Sir Henry van der Heyden credits the increase to the season progressing well.

Fonterra increased payments a week after OCD are higher, but OCD chairman Laurie Margrain says his company’s payments could increase again upon further review next week. According to Margrain, the OCD will either match or top Fonterra’s rate.

Open Country Dairy says the higher payments is competition at work and the farmers’ bottom line benefits the most.

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Source: www.ODT.co.nz