Dairy suppliers need certainty
PRESSURE is mounting on major dairy companies to set new season opening farmgate milk prices in the coming weeks.
In what is believed to be an industry first, Bega Cheese announced it would continue its 2017-18 farmgate milk price of $5.63/kg of milk solids through to September in a bid to give its dairy suppliers some certainty on returns.
Bega Cheese chairman Barry Irvin said the company wanted to instil some confidence among its suppliers heading into spring.
“We wanted to give some strong signals to farmers when they have been getting some pretty negative signals in the past little while,” Mr Irvin said.
“So farmers know they have got that price for the first three months of next season.”
The company said it would announce milk payments for October onwards before September.
Bega Cheese was also offering a once-off 50c/kg of milk solids payment if suppliers agree to a three-year milk supply agreement, and 25c/kg of milk solids for a two-year arrangement.
PRICES: Bega Cheese has announced it will continue its 2017-18 farmgate prices.