Murray Goulburn lifts farmgate milk prices for the new season citing ‘better market conditions’

22 June 2017

ABC Rural
By Clint Jasper
Updated about 5 hours ago
22 June 2017

Murray Goulburn lifts its farmgate milk price to move closer to industry rivals. (Supplied: Kath Sullivan)
Milk processor Murray Goulburn has lifted its opening farmgate milk price for the coming milk season to $5.20 kilogram of milk solids (kgms).

Its initial offering of $4.70 kgms was beaten by every other milk processor in south-eastern Australia.

The $5.20 offering includes its ‘reward program’, payments Murray Goulburn is offering suppliers who’ve never left the cooperative or new suppliers.

Murray Goulburn made that announcement on June 6, much earlier than it usually discloses its opening price.

The processor refused an interview with the ABC, instead issuing a statement to media saying lifting the price was “intended to assist in maintaining competitiveness and support the supplier base”.

“Since [June 6], MG has had the opportunity to review the 2017/18 budget assumptions, which include dairy commodity prices, exchange rates and achieving cost-out initiatives, as well as achieving milk intake of approximately 2.5 billion litres,” the statement read.

Read more here