Burra jumps out of gate

BURRA Foods has revealed a positive opening milk price for the forthcoming season, up 14.5 percent on the current year.

The Korumburra-based processor is the first company to announce its opening price, revealing a farmgate milk price range of $6.40-6.70/kg of milk solids for July 1, 2019 to June 30, 2020.

Burra Foods chief executive officer Grant Crothers said the announcement of the price was significantly earlier than ever.

“The price is supported by our confidence in demand for the Burra product range and current outlook for commodities,” he said.

Saputo Dairy Australia is maintaining an average milk price of $6.05kg of milk solids for this season.

“While world markets have continued to show some improvement in the past few months, mainly due to easing growth in milk production and a reduction in skim milk powder stockpiles in the EU, prices declined across dairy commodities during the first half of the 2018-19 season,” a spokesperson said.

“Seeing the signs of a sustained recovery in the market provides an optimistic outlook that milk prices can improve in the season ahead. We will review our milk price again in June, when we plan to announce the final closing price for 2018-19.”

Mr Crothers said the timing of Burra Foods’ announcement was a response to requests from farmers for earlier indications of next season prices.

“The opening price range reflects the cash price received by a large majority of supply partners regardless of whether they have already received the 2020 financial year annualised portion of their Commitment Bonus,” he said.

“It excludes any portion of milk solids committed to the Fixed Farmgate Milk Price and is an opening price that may increase by way of retrospective step-ups during the season.

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Posted by Tayla Kershaw on May 7 2019. Filed under News, 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