Australian dairy: Bulla boosts 2021-22 season opening price

Bulla was first out of the gates in the 2021-22 opening price stakes. Now, it has upped the ante with an increased offer ahead of the June 1 deadline.

Bulla has boosted its opening figures across the board by 10c per kilo milk solids. Picture: Zoe Phillips

Bulla has upped the ante in the 2021-22 season price race — boosting its opening figures across the board by 10c per kilo milk solids.

The Colac-based processor has now indicated a pricing range of $6.50/kg-$7.00/kg milk solids, up from the $6.40/kg-$6.90/kg milk solids range it initially offered in mid-April.

In a letter to suppliers, Bulla dairy general manager Rohan Davies said the processor’s planning had been progressing well since the April offer, leading to the pre-season step up.

“Pricing will continue to be monitored throughout the year and step ups will be considered based on business performance and market conditions,” Mr Davies said.

In April, management also confirmed the addition of an extra price band for milk supply above 49 per cent — the Milk Supply Ratio (MSR).

Under the mandatory dairy code of conduct, all dairy processors are required to announce their new season price by June 1.

Bulla was the first processor to unveil its initial opening figures and has been followed this month by Fonterra and Burra.

In a letter to suppliers, Burra Foods chief executive Stewart Carson confirmed an opening price range of $6.40 – $6.80 per kg milk solids for the 2021-22 season.

Fonterra offered an average weighted figure of $6.55 per kg milk solids.

Fonterra Australia managing director Rene Dedoncker did not rule out raising the processor’s opening offer before the June 1 deadline in a radio interview a fortnight ago.

Saputo and Bega are yet to reveal their 2021-22 season opening prices.

MORE:

SAPUTO AND BEGA QUIET AT THE FARMGATE

IS ALGAE MILK THE NEW DAIRY SUBSTITUTE?