ACM offers minimum price

Milk drive: Australian Consolidated Milk general manager commercial Peter Jones is aiming to lift the company’s pool of milk in South Gippsland.

AUSTRALIAN Consolidated Milk (ACM) is offering its suppliers price certainty, with a minimum $6.50 a kilogram of milk solids for next season.

This price is a “floor” and includes nine months of $7kg/MS and three spring months – September, October, November – at $5.50kg/MS.

The company has a pool of milk in Gippsland, with field officer Robyn Mitchard living in the region.

ACM general manager commercial Peter Jones said there’s room for the price to move higher, mostly in the spring price, but this base price allows suppliers to budget for the coming year.

An opening price will be available later in the season and at this stage it’s a forecast $6.70kg/MS.

“It’s more important than ever that our suppliers have a clear-line of sight when it comes to next season’s pricing,” Mr Jones said.

“This has been a tough season and high-waterprices; fodder and grain have all put pressure on dairying businesses.”

The floor price for the 2019-20 season- starting July 1- will be available for current and new suppliers who sign-on by March 31.

“We are trying to provide certainty, not forcing their hand,” Mr Jones said.

“Our suppliers do not need to sign before the end of March, but if they do, they are protected witha guaranteed floor.

“Our suppliers who sign-on get the safety of the floor and should the open be higher, the higher price will become their guaranteed price, plus any increases or step-ups announced.”

Short URL: http://thestar.com.au/?p=27858

Posted by on Mar 13 2019. Filed under Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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