Australian Dairy Farmers Corporation lifts farmgate price

Australian Dairy Farmers Corporation has lifted its farmgate price — and its manager says it’s seeking new farmers.

Australian Dairy Farmers Corporation has provided a second step up to suppliers, boosting its farmgate offering by 25 cents per kilo milk solids.

With only two months left in the current season, ADFC has become the third processor to lift at the farmgate for a second time after Fonterra and Bega also provided a secondary price revision in the past month.

Saputo and Lactalis are yet to declare whether they will follow their main rivals and increase their farmgate offerings for a second time.

ADFC general manager Andrew Sutton said the processor was one of the price leaders on average, with its farmgate now sitting at $8.65 per kilo milk solids.

He said ADFC had lifted a combined 45 cents per kilo milk solids since the July 1 opening.

“We always said we would provide step ups as soon as conditions were right and we’re now fulfilling that and passing it on to our suppliers,” Mr Sutton said.

“Farmers have been doing it tough in many parts of Victoria with drought, or at least drier-than-average conditions. This step up recognises that as well as the market strength out there for dairy.”

With deadline day under the mandatory dairy code of conduct less than a month away, Mr Sutton said ADFC would be competitive.

“We’re looking for new suppliers. We’re not chasing huge volumes — we’re keen to increase capacity by 15 to 25 million (litres) — we’re after sustainable growth,” he said.

With only two months left in the current season, ADFC has become the third processor to lift at the farmgate for a second time

ADFC will be holding supplier information sessions starting Monday (May 5) at the Camperdown Golf Club; May 6 at the Simpson Football Club; May 7 at the Meeniyan Football Club; May 8 at the Korumburra Middle Hotel; May 12 at the Cohuna Football Club and May 13 at the Tongala Football Club.

All information sessions will start 11:30am.

Rabobank industry analyst Michael Harvey told the Dairy Farmers of Victoria conference this week that Australia’s farmgate average would rise next season, to be around or higher than $9 per kilo milk solids.

Mr Harvey said the weaker Australian dollar had boosted dairy’s export competitiveness and international trading conditions had improved with softer supply from other exporting nations.

DFV president Mark Billing said farmgate prices needed to reflect improved conditions both at home and abroad.