Both Bulla and Lactalis have announced price increases – in the case of the western Victorian processor it’s the third step up, since it opened in April.
Bulla has told suppliers it’ll pay another 15 cents a kilogram milk solids, across the four bands it offers.
It’ll now pay between $6.85/kg- $7.35/kg MS, after opening at $6.40/kg-$6.90/kg MS.
In May, Bulla increased the figure to $6.50/kg-$7.00/kg MS and $6.70/kg-$7.20/kg MS.
Bulla Dairy Foods general manager Rohan Davies told suppliers pricing would be automatically updated in the system.
“We are very grateful for the feedback, provided by our suppliers over the last two weeks to myself and field officers as other processors have continued to increase pricing,” Mr Davies said.
“Our family business is built on the consistent supply of fresh quality milk from across Victoria and we are committed to remaining competitive at the farmgate to secure the milk supply needed to grow our business into the future.
“Pricing will continue to be reviewed throughout the year and step-ups will be considered based on business performance and market conditions.”
Lactalis also increased its price by 10 cents weighted average for flat milk, comprising eight cents/kg butterfat and 12c/kg protein.
The processor increased its seasonal milk price for southern Victoria by 15c/kg MS.
Earlier this month, Lactalis opened with a $7.30/kg MS weighted average, which included a guaranteed $0.25/kg MS retail support
For Gippsland and the western districts that was $7.15/kg MS weighted average, which included a guaranteed $0.10 /kg MS retail support.
Lactalis offered a seasonal milk supply agreement of $6.90/kg MS (predicted weighted average) for Gippsland and western Victoria.
“The price is the same for northern and southern Victoria, except our farms in the north receive more retailer drought support,” National Milk Supply manager Matt Morrow said.
Northern Victoria and southern NSW/ Riverina suppliers would now receive $7.40/kg MS weighted average.
“We hope this increased pricing supports our commitment to you to be paying a strong competitive price,” Mr Morrow said in a letter to suppliers.