Lion Dairy and Drinks has announced its minimum pricing for its direct milk suppliers across key Australian dairying regions for the 2020/2021 milk season. This pricing is applicable from 1 July 2020 to 31 August 2021.
In line with the requirements of the new mandatory Dairy Code, which came into play on 1 January 2020, Lion Dairy & Drinks has released all of its contracts for each dairy region on its website and is offering both exclusive and non-exclusive supply agreements for the 2020/2021 milk season.
Murray Jeffrey, agricultural procurement director for Lion Dairy & Drinks, said the publication of regional-specific contracts and pricing on Lion Dairy & Drinks website was designed to provide transparency to farmers.
He said the company was mindful of the impact COVID-19 had on southern milk pricing, together with the impact that drought has had on many farms in New South Wales, South East Queensland and Northern Victoria over the past 18-months and was sympathetic to the impact this was having on higher feed costs and farm profitability.
Murray said Lion Dairy & Drinks was committed to working with all its dairy suppliers on mutually beneficial partnerships and programs – this included continuing to facilitate its unique sustainability program, Lion Dairy Pride. The program launched in 2017 and is designed to help our dairy suppliers be more sustainable across five key areas of the dairy farm business system: milk quality, animal welfare, people, community and wellbeing, the environment and business management. The program offers easy access to useful tools and templates, as well as links to external resources.
“Our minimum pricing for the FY2020/2021 milk season is a sign of our confidence in the Australian dairy industry, and in our growth strategy,” Murray said. “Our purpose-led vision is to deliver sustainable, enjoyable nutrition to help people live well and our strategy will see us continue to focus on driving profitability in key dairy categories with our premium dairy brands and market-leading innovation.”
Murray said the company had proven to be the natural partner for dairy farmers who wanted to focus on growing value through nutritious, branded dairy products that delivered competitive returns and a sustainable future for the industry.
“We are focused on driving profitable growth in milk based beverages, white milk and yoghurt as well as for the benefit of our farmer partners, customers, network partners, consumers and other stakeholders,” he said.
“Our approach to milk procurement for many years has been based on offering farmers, what we call the ‘3 P’s’: competitive pricing and contract terms, partnerships and a clear purpose and strategy built around growing profitable demand for dairy and ensuring sustainable returns through the supply chain.
“We are working hard to deliver compelling pricing underpinned by our focus on driving sustainable value back into the industry. Lion Dairy & Drinks is committed to working with all its dairy suppliers on mutually beneficial partnerships and programs.”
There are around 280 dairy farms supplying the Lion Dairy & Drinks business across Australia – this includes direct Lion Dairy & Drinks suppliers and suppliers through the Dairy Farmers Milk Co-Operative (DFMC).