Sup­plier switch

Milk price of­fers en­cour­age farm­ers to con­sider op­tions

Southern Riverina news - - RURAL OUTLOOK -

Con­tin­ued dairy in­dus­try pres­sure is forc­ing district farm­ers to change their sup­pli­ers.

The de­ci­sions are di­rectly re­lated to milk prices be­ing of­fered by Murray Goul­burn this sea­son.

NSW Farm­ers As­so­ci­a­tion dairy com­mit­tee deputy chair and Blighty dairy farmer Mal­colm Holm said while Murray Goul­burn had been able to in­crease its milk prices this sea­son, it was not on par with other re­gional sup­pli­ers.

‘‘Murray Goul­burn is of­fer­ing $5.20 per kilo­gram of milk solids, with a range of up to $5.50. But it did ini­tially of­fer $4.70, which prompted farm­ers to con­sider their op­tions,’’ Mr Holm said.

‘‘Other sup­pli­ers are of­fer­ing higher prices, and there­fore more sta­bil­ity.

‘‘The milk prices (from Murray Goul­burn) are get­ting to a level where you can start to make a profit, but our in­puts are also on the rise and the price of­fered needs to bal­ance that.

‘‘Peo­ple are also still car­ry­ing a debt from the last 18 months, as a re­sult of low milk prices pre­vi­ously of­fered and the tough sea­son.’’

Mr Holm said he knows of at least three dairy farm­ers lo­cated be­tween Ber­ri­gan and Blighty who have switched sup­pli­ers in the last week. He sus­pects an­other three or four are still con­sid­er­ing their op­tions.

He said those who have switched have ei­ther gone to Fon­terra or the Wagga based Rive­rina Fresh which has been sourc­ing milk from the Fin­ley district for about 10 years.

Fon­terra Aus­tralia an­nounced an open­ing milk price of $5.30 per kilo­gram of milk solids and a range up to $5.80. Cou­pled with the com­pany’s ad­di­tional pay­ment of 40 cents/kgMS, the open­ing price is re­vised to $5.70 with a range up to $6.20.

Milk prices be­ing of­fered by Rive­rina Fresh have not been made pub­lic.

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