Australian Consolidated Milk revises rate

This comes after Parmalat suppliers reported receiving an opening price of $5.90kg/MS on Friday and Lion offered southern suppliers a one-year fixed price of $6.10/kgMS, a one year weighted average variable price of $5.82/kgMS or a three-year fixed price of $6.05/kgMS.

ACM is the second processor to revise its opening price after Bulla Dairy Foods lifted its price by 20 cents a kilogram of milk solids this month. The Bulla range is now $5.80kgMS-$6.20/kgMS, depending on when the milk is supplied throughout the season.

In a letter to suppliers, ACM managing director Michael Auld said it had nearly been two months since ACM announced its opening farmgate milk price of $5.90/kgMS.

“Since this time we have had the benefit of receiving the commitment of our supplier base and reduce some of the spring milk surplus price exposure,” he wrote.

“Our usual practice is to wait until we have realised the gains but in light of higher input costs, such as water, grain and fodder, we have decided to bring this price increase forward.”

“Recent feedback has been that our suppliers are really seeking a better spring price for their milk. So to help in this respect we have increased the price for the months of September, October, November, December, January, February and March by $0.09/kgMS for butterfat and $0.19/kgMS for protein.”


Source: The Weekly Times


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