MILK processor Murray Goulburn (MG) has announced a fifth step-up in the farmgate price for the 2013/14 season.
This step-up of $0.09 per kilogram butterfat and $0.19 per kilogram protein takes MG’s weighted-average available price to $6.66 per kilogram milk solids.
MG has also revised upward the forecast for the full year from its current price of $6.66 up to $6.85 per kilogram milk solids.
External factors including fluctuating international commodity prices and currency movements may result in a final price that is higher or lower than this forecast.
Warrnambool Cheese and Butter announced a step up two weeks ago to bring its weighted average milk price to $6.67 per kilogram milk solids.
It announced step ups of 16c/kg for butterfat and 40c/kg for protein.
WCB said its average closing prices might now exceed $6.80c/kg.
MG’s step up is its fifth this financial year and will deliver an additional $31 million to MG dairyfarmers to support business cashflow.
When this is combined with the four previously advised step-ups, MG has added $216 million to farmgate returns since announcing a record opening price for the 2013/14 season last July.
“Global prices for dairy ingredients have decreased from their record highs in the past two months,” MG managing director, Gary Helou, said.
“The Australian dollar has also seen some recent strength but remains lower than the same time last year when it was well above parity with the US dollar.
“As we look towards the 2014/15 season, these market movements will influence our farmgate price.
“However, as the current year’s production is now largely sold, their impact on our current season price is limited.
“Our continued focus on improving performance through reducing costs and investing to support innovation and value growth, has also contributed to this step-up."
