Australian milk supplier Bega has continued the farmgate milk price bidding frenzy, joining other smaller suppliers by going above $9 a kilogram milk solids for its Victorian and south-east SA suppliers for the upcoming season.
Bega executive chair Barry Irvin has told farmers in a letter their opening average milk price would increase 30 cents to $9.10/kgMS, calculated on current supply in the region.
Mr Irvin said Bega had been "carefully reviewing the market for our product and the continued strong competition for milk supply".
"Whilst market fundamentals remain stable for our product returns, the competitive market for milk supply is very strong with many companies adjusting their milk prices over recent weeks impacting our competitive position," he said.
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"We will endeavour to improve milk pricing should market circumstances allow and will continue to review milk pricing to ensure we are making a competitive offer to our suppliers for their milk."
Bega will also raise its northern Victoria and Riverina opening price by 35c to $9.25/kgMS, being the first Australian supplier to break the $9 mark.
Australian Dairy Farmers Corporation lifted its average price to $9.30/kgMS on Friday, which is one of the top offerings in the southeast.
Other smaller and overseas suppliers like French-owned dairy processor Lactalis had also pushed its farmgate milk price over $9/kgMS.
Fonterra and Saputo are on an average weighted price of $8.80/kgMS, although smaller suppliers like Lactalis have been highly competitive with their farmgate milk prices breaking the $9 barrier.
