Norco provides February step-up for suppliers as Fonterra, Saputo and Bega lag behind
One of NSW’s top dairy processors has stepped up at the farmgate. Yet Victoria’s main players — Fonterra, Saputo and Bega — are slow off the mark.
NORCO has broken ranks in the stand-off over static farmgate prices — lifting the price it pays its suppliers by two cents a litre.
The Lismore-based dairy co-operative announced today that its farmers will receive 77 cents a litre for the second half of the financial year.
The move will push its average for the 2020-21 season up to slightly above 70 cents for its suppliers based mainly in northeast NSW and southeast Queensland.
It comes after renewed pressure last week mounted on Victoria’s top dairy processors — Fonterra, Saputo and Bega — to lift its farmgate offerings.
Norco chief executive Michael Hampson said the board approved the move last week, releasing a statement publicly today.
“In light of the improved trading conditions of the business and the support that we’re getting from our customers, they certainly took the view to provide additional support,” he said.
“We’ve certainly had some mixed climatic conditions within our member base. It’s been incredibly wet in some areas where some of our members have had some failed crops and indeed in the north where it hasn’t rained as much and they’ve not been as healthy as they would’ve liked.”
Australia’s big three processors have stuck to opening prices around the $6.40/kg milk solids mark since mandated to outline farmgate figures seven months ago.
Fonterra was forced to lift its average opening price in June — from $6.06/kg milk solids on Monday to $6.40/kg milk solids — within 48 hours of its initial figure being reported as part of the mandatory dairy code of conduct.
Saputo offered $6.40/kg milk solids at the June 1 deadline while Bega split its opening figure geographically — $6.40 for southern Victoria and $6.55 for northern Victoria.
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