Dairy farmers say Murray Goulburn’s (MG) 15-cent step up in milk payments is a good start to restoring confidence in the embattled industry.
Supplier-director Lisa Dwyer said farmers were feeling more positive after MG announced the farmgate milk price increase on Tuesday. Suppliers will receive a weighted average price of $4.46kg/ms – after milk supply support package (14-cent clawback) repayments.
The average available farmgate milk price will be $4.60kg/ms for those able to pre-pay the support package.
“As an organisation and as a co-operative, Murray Goulburn has been committed to delivering a step up as soon as possible,” she said.
Aside from financial benefit Ms Dwyer said the step up would begin to restore farmer confidence in the dairy industry.
“It’s only the beginning but it’s a good start,” she said.
Woolsthorpe supplier Brian McLaren agreed it was a step in the right direction.
“You can’t knock them for putting something down,” he said. “We’ll look forward to more in the future.”
He said he was more interested in the review of the clawback, still “hurting loyal suppliers”.
“Suppliers are leaving in droves,” he said. “It’s not fair for those of us who stayed and still have to pay.”
A review of the clawback was announced by MG chair Philip Tracy last week with results to be presented in October.
It's a positive step but there's a long, long way to go.
- John Bushell
Koroit supplier John Bushell said the good rain, the step up and the upcoming clawback review were all good news.
“If they can stop (the clawback) then MG wont be the big bad wolf and it’ll be a positive for the area and the farmers,” he said.
“It’s a good start but there’s still a long, long way to go.”
The company has forecast the closing milk price will rise by eight cents to $4.88kg/ms by July 2017.
MG’s interim chief executive David Mallinson said while market conditions remained volatile, the company had captured some of the current uplift in prices, passing this on to suppliers.
He said MG remained determined to deliver higher returns throughout the year.