Murray Goulburn (MG) has announced it would increase is farmgate milk price to $5.20 kg/Milk Solids (kg/MS).
The co-operative initially said it would open at $4.70, with a closing range of between $5.20 and $5.40.
A week out from the opening of the new season, MG said the new price included its reward program and other incentive payments.
It also revised its full year farmgate milk price up, to a range of $5.20-$5.50/kg MS.
A spokesman said the first opening price, in early June, was earlier than previous years, in order to try and help famers budget and assist with business planning.
“Since then, MG has had the opportunity to review the 2017/18 budget assumptions, which include dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5 billion litres,” the spokesman said.
“The updated FMP has also taken into account improved commodity prices reflecting anticipated market returns, together with additional contracted sales.”
The co-operative recognised that in the current competitive environment it needed to maintain milk supply and provide an improved cash flow for suppliers.
“The decision to revise the opening price to $5.20/kg MS is intended to assist in maintaining competitiveness and support the supplier base.”