NSW Murray Goulburn suppliers win in new milk deal

NSW suppliers of Murray Goulburn milk could receive up to $1.50 per kilogram of milk solids more than suppliers in Victoria as the company set up its new processing facility in Sydney.

Murray Goulburn said that the NSW market would receive approximately 10 percent more than southern producers based on specific requirements such as fixed volumes and flat milk supply the Weekly Times Now reports.

A spokesperson for MG said that as the processor is entering the well established NSW marketplace, pricing had to be in line with that market.

"It requires very specific milk production for that market," the spokesperson said.

A Murray Goulburn milk payment table for the Sydney market region stated that suppliers will receive a base price of $5.71/kg of butterfat and $8.57/ kg of protein. Whereas the average price in Victoria is approximately $3.27/kg of butterfat and $7.80/kg protein.

The announcement of Murray Goulburn’s new $60m milk processing facility in Western Sydney came earlier this month and the new site, which was formerly a quarry site, is located in Erskine Park spanning 5ha.

The dairy processor announced a $2b deal with supermarket giant Coles in April this year for the supply of its house branded milk over a 10 year period. 


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