Gippsland milk processor Burra Foods chief executive Grant Crothers has hinted it might be a “step up” year for its suppliers, but not just yet.
Mr Crothers said supplier meetings were scheduled for early this month.
“Naturally, step ups will be a topic of discussion however it would be unusual for one to be announced so early in the season,” Mr Crothers said.
The company announced an opening price range of $4.40-$4.60 kg/ms for the new season, which started on July 1.
Burra Foods held its $5.60kg/ms price last season, after major processors Murray Goulburn and Fonterra sharply cut farmgate prices.
“While we believe it is a step up year, Burra opened considerably higher than other Gippsland processors so as to provide the best cash flow possible to our supply partners,” Mr Crothers said.
It was shaping up to be a year when the majority of farmers would struggle to break even.
“That Burra finished +/-20% above other processors (debt free basis) in FY16 provides a stronger outlook and balance sheet to all our supply partners,” he said.