Study helps set higher milk price

BURRA Foods is offering a higher price for selected milk after studying a Farming Together-funded report.
The Korumburra-based company is offering a higher payment ratio for milk solids – a deal that benefits breeds such as Jersey cows, which have milk of a naturally higher fat content.
Jersey Australia sought support from the successful Farming Together program to prepare a report detailing the disparity between market demand, processor returns and farmgate earnings.
Burra Foods sought a copy of the report as part of its decision-making into the price differential, Jersey Australia general manager Glen Barrett said.
The study found high density milk, that with higher milk solids, fat and protein levels (called components), was more cost-effective to transport and process.
This higher-component milk was 8.5c/kg milk solids or 0.6c/litre cheaper for processors to cart and handle.
Milk from Jersey cows is typically higher in components than the dominant Australian dairy breed, Holstein-Friesian cows.
Jersey Australia president Chris MacKenzie, from Timboon in western Victoria, said, “Jersey breeders will welcome the move to provide them a fairer return for their higher fat content milk supplied to Burra Foods.”
Global shortages of butter and milk fat products for processing have led to increased emphasis on fat in farmer payments, however payments for protein still outweigh those paid for fat.
“Burra Foods should be congratulated for being the first processor to move to bring the fat payment in line with protein and we call on all processors to provide payment equality for fat and protein milk components,” Mr MacKenzie said.
Farming Together program director Lorraine Gordon said Jersey Australia sought to put science behind a claim that should see premium milk recognised with premium pricing.
The Farm Co-operative and Collaboration Program (known as Farming Together) is a two-year, $13.8 million initiative from the Federal Government designed to help agricultural groups value-add,

Promoting the breed: Jersey Australia has welcomed the higher price offered by Burra Foods for selected milk.

Short URL: /?p=25358

Posted by Sarah Vella on Jul 3 2018. 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