Burra Foods has stepped up its base farmgate milk price by an equivalent of 13 cents a kilogram milk solids.
Burra Foods chief executive Grant Crothers said the step-up was the result of a softening Australian dollar, against the US dollar, rather than market improvement.
“Global markets have remained relatively flat so far this season,” Mr Crothers said.
“In the case of the GDT, every auction bar one has declined since the start of June.
“Thankfully, the Aussie dollar has depreciated by around 6 per cent since the start of July, which has enabled us to pass on as much benefit as we can to Milk Supply Partners via this step up.”
Mr Crothers said conditions were very challenging for many farmers, including those in Gippsland.
“We acknowledge the tough business decisions our Milk Supply Partners are regularly making, caused by dry seasonal conditions.”
Burra will continue to regularly review its milk price.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
