Dairy processor Bega Cheese will cut its farmgate milk price by 11 per cent when the new season commences on July 1.
As the ABC reports, the company announced yesterday that it will cut the amount it pays farmers from $5.60 Kg milk solids to $5.
The announcement follows the decisions of the two major processors, Murray Goulburn and Fonterra to retrospectively cut farmgate prices in April.
“Farm gate milk prices are ultimately driven by returns we receive from markets both within Australia and globally. Many of the factors affecting these markets such as global supply, demand, currency relativities and competitor behaviour are beyond the control of individual companies,” commented Executive Chairman Barry Irvin.
“Bega Cheese’s long term strategy of building value added business platforms does assist in enhancing the base value of dairy products and therefore farm gate milk price, but cannot insulate farm gate milk prices from the reality of the markets.”
Meanwhile, as the Weekly Times reports, farmers who are dealing with the cuts by Murray Goulburn and Fonterra are now waiting for the new season prices.
“It is extremely disappointing that scant few processors have made opening price announcements to date,” said Australian Dairy Farmers acting president David Basham.
“Farmers are already facing a very challenging season. Processors should be doing what they can to provide certainty and support during these unprecedented circumstances.”