Bega supplier says processors with high opening prices will be rewarded

Undera farmer Fred DeCicco praised Bega for coming out with a strong opening price that forced some of its competitors to step up within days of the June 1 reporting deadline.

Sonyia and Fred De Cicco with their sons, Daniel and Ben. Photo by Chloe Smith

WHEN it comes to how processors handle opening farmgate prices, Fred DeCicco says it pays to get it right the first time.

The Undera dairy farmer supplies Bega and has praised the processor for coming out with a strong opening price that forced some of its competitors to step up within days of the June 1 reporting deadline.

Bega has offered $6.55 per kilo milk solids to northern Victoria suppliers like Mr DeCicco, with a figure of $6.40 for southern Victoria.

“There was some analysts saying before June 1 that we may have a price below $6 (per kilo milk solids), so the figure that we ultimately got was a relief,” he said.

“Bega coming out with a stronger opening price forced some of the other processors to improve their offering. No-one can take farmers for granted like they used to.”

Located at Undera, north-west of Shepparton, the DeCicco family have been in the dairy industry since 1966.

Fred’s parents Cosimo and Maria supplied Bega’s antecedent processor Tatura and the family legacy continues to present day.

“I think there’s been a change in the past few months about milk prices, that there’s a growing acknowledgement that a fair price has to be paid (to farmers),” he said.

While Bega and other processors such as Australian Consolidated Milk, Saputo and Bulla have maintained their opening prices disclosed on June 1, rivals moved to alter their figures following the new mandatory code deadline.

Fonterra opened with a farmgate average of $6.06 per kilo milk solids, lifting the figure to $6.40 per kilo milk solids only days later.

Burra Foods also shifted its opening price range from $6-6.40 per kilo milk solids on June 1 to $6.10-$6.50 per kilo milk solids later that same week.