A small Gippsland milk producer has stepped up its payments by 50 cents kg/ms.
Longwarry Food Park, Longwarry, which produces Gippy Milk, has increased payments by 32c kg/ms milk fat and 70c kg protein, which equates to $5.10kg/ms.
Longwarry Park is owned by Parmalat.
The company’s national milk supply manager Stefan Leske said the pricing review occurred earlier than expected, as a result of the sustained increases in milk commodities, over the past three months.
“We felt that bringing this review forward and providing this price increase before Christmas will allow our suppliers the opportunity to prepare for the second half of the 2016- 17 season,” Mr Leske said.
“The price increase will be paid retrospectively on milk supplied from 1st July 2016 and will be paid in conjunction with the November milk payment on the 15th of December. If commodity pricing continues to improve we will be providing additional increases.”
But he said the global supply and demand balance was subject to political and climatic influences, so the company must remain responsible in milk price increases.
If commodity pricing continues to improve we will be providing additional increases.
- Stefan Leske, Longwarry Food Park national milk supply manager