Gippsland milk processor Burra has again stepped up the milk price it offers its more than 170 farmers, by another ten cents a kilogram milk solids (MS).
The company first increased its forecast closing price by 10c/kg MS in late October.
The price opened between $4.40 and $4.60/kg MS and farmers said it was now averaging $4.70/kg MS.
Burra chief executive Grant Crothers said the step up was announced at the annual supply partners’ Christmas dinner, at Lardner Park, Warragul.
“This reflects recovering commodity markets and a more friendly currency which we welcome, and look to further improved returns for the balance of FY17,” Mr Crothers said.
He told suppliers he was encouraged by the optimism among farmers, many of whom were in a good position, with lots of quality feed.
“I was reminded that this time last year we had already had 10+ days of 30 degrees celsius and only two so far this year and no high temperatures on the immediate horizon,” Mr Crothers said.
“It seems that with plenty of silage now cut and lots of affordable grain available, the season has been sympathetic to what started out as a low milk price/ break even at the very best.
“When there is talk of a chance of a third silage cut even I recognise that the season is close to 'made to order'.”
