Victoria’s dairy farmers told to wait on milk prices

Despite Murray Goulburn’s early opening price announcement, many Victorian dairy farmers have been told to wait until the new season commences to uncover their opening milk prices.  

Murray Goulburn (MG) has announced an early opening price of $5.60 per kilogram of milk solids, almost a month premature of the new season starting date.

The Weekly Times Now reports that the price includes a ‘prepaid step up’ equating to 13c/kg of milk solids which will be available to dairy suppliers next month, resulting in a 24 percent rise in its opening price.

The announcement was widely embraced by industry, however other milk processors in the region say that they will not be ‘rushed’ into a price announcement.

Other major processors have stated that as the market is moving in a positive direction they will announce prices soon, however volatility in the market required decisions to be made with caution.

Heather Stacy, Fonterra’s milk supply general manager said that the weakening in the Aussie dollar and rising commodity prices provided a positive outlook.

“(MG’s) opening price, which includes a binding loyalty payment, does confirm our view that the market is moving in a positive direction," said Stacy.

Robert Poole, MG’s shareholder relations general manager said that the early announcement will aid in the development of suppliers budgets.

"Given the very tough season we wanted to provide dairy farmers with maximum opportunity to budget on known pricing so they could plan their (financial year) 2014 cashflow," he said.

Supermarket giant Coles has also said that it would consider paying processors more, providing they can demonstrate that the increase is a direct result of farmers receiving a higher price.


Send this to a friend