Burra follows Bulla, Norco and Bega; steps up farmgate milk price

Bulla, Norco, Bega, and now Burra. The Gippsland-based processor is the latest to step up at the farmgate — although no movement has been registered by Saputo or Fonterra.

Burra Foods chief executive Stewart Carson said seasonal conditions in Gippsland had been ideal for the past six months. Picture: Andy Rogers

BURRA Foods has become the latest processor to lift its farmgate milk price, with a 10-cent step up for its suppliers.

The move represents a lift from $6.40/kg milk solids to $6.50/kg milk solids, mirroring the rise announced this week by rival Bega for its southern Victorian suppliers.

Bega also raised its farmgate figure for northern Victoria, from $6.55/kg milk solids to $6.65/kg milk solids.

Saputo and Fonterra remain at $6.40/kg milk solids, a figure confirmed before the start of the 2020-21 season in June 2020.

In a letter to suppliers this week, Burra Foods chief executive Stewart Carson noted that the increase was the result of strengthening international demand for dairy products.

“Recent increases in demand have resulted in price increases on the Global Dairy Trade (GDT) over the past few months and Burra Foods has been able to take advantage of this by adjusting product mix,” Mr Carson said.

“Unfortunately, the continued strengthening of the Australian dollar against the US dollar continues to be a real challenge but we are confident with our position to increase milk price

for the season.

Mr Carson said much of Gippsland had enjoyed a great spring and mild summer over the past six months.

“With grass still growing in many parts of the region and plenty of hay and silage stored away, our (suppliers) are producing well, and our milk supply is up on forecast,” he said.

“The reliability of milk supply is a strong selling point to our customers and provides them with the confidence of ongoing supply.

“The global markets seem to be well balanced, so we don’t expect to see much change in the short to medium term.”

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