Dairymen facing cuts

DAIRY group Murray Goulburn Co-operative has warned the price it will pay farmers for milk at the start of the new financial year will fall.

But the price should soon pick up, the group says, depending on market conditions and its efforts to cut costs.

The group set its opening farmgate milk price for next season at $4.70 for each kilogram of milk solids – lower than the $4.95 it had set for the current financial year.

It expects the full-year farmgate milk price next financial year to improve to between $5.20 and $5.40.