PROCESSORS left it to the last minute to announce opening farmgate prices on June 1 and there have already been some adjustments since then.
Initial opening prices averaged around $8.92/Kg MS, 6.6 per cent above last season’s opening but almost five per cent down on 2022/23 closing prices.
Saputo opening in the range of $8.90kgMS – $9.05kgMS and Burra Foods $8.50 to $9.00/kg set the standard and others, including Fonterra and Bega who have adjusted to meet the competition for supply.
Fonterra Australia offered an opening price of $8.65kgMS before increasing to $9kgMS,
Bega opened at $8.80kgMS before announcing the addition of a weighted average Australian fresh premium of $0.20kgMS for Victorian, Riverina NSW and south-east South Australian suppliers.
Now Burra Foods have announced an increase to its Financial Year 24 Opening Milk Price. They released the good news at supplier meetings held on Tuesday and Wednesday this week of 20c/kgMS.
Burra’s revised FY24 Opening Milk Price Range is now $8.70-$9.20/kgMS.
United Dairy farmers Victoria (UDV) President, Mark Billing, rated the first offers from the processors as “a good starting point”.
Locally, UDV Councillor for South Gippsland Ben Vagg, said it wasn’t aggressive enough and said it would have to test the $10 mark if processors wanted to send the right signal to the sector.
It looks as if he was right and processors are moving in the $10 direction.
Dairy price outlook
Average new season farmgate milk prices opened at around $8.92/Kg MS, but swift step ups from major processors saw the average lift to around $9.01/Kg MS.
Global dairy prices remain lacklustre as subdued global demand and continues to limit any sustained gains.
Positive seasonal conditions are expected to result in 2023/24 Australian milk production of around 8-8.1 billion litres.
