Australian dairy farmgate prices: Burra provides March step up
Burra has become the latest processor to provide a step up. But some factories still aren’t moving. Here’s the latest.
Burra Foods has become the latest processor to provide a step up to suppliers, as dairy trading conditions improve abroad.
Management at the Korumburra-based processor confirmed a 10 cent step up to suppliers, meaning its price range now sits between $8.10 to $8.60 per kilo milk solids.
Burra Foods chief executive Stewart Carson cited the strengthened Global Dairy Trade index, which has risen by nearly 20 per cent since the start of the current financial year.
“Like the GDT, demand and pricing for our fat products has improved, whilst protein products have continued to be underwhelming,” Mr Carson said.
“Despite increasing global volatility, demand in core international markets is stable, whilst China is still uncertain as local milk volumes exceed demand.”
Burra is the latest in a line of medium-sized processors to raise their farmgate offerings, with both Bulla and Union Dairy Company lifting 20 cents per kilo milk solids in February.
Fonterra was the first to lift this season with a pre-Christmas jump of 15 cents to sit at a weighted average milk price of $8.15 per kilo milk solids.
Both Bega and Saputo swiftly followed in the lead up to the festive season with yuletide step ups of 15 cents each.
One of the few to keep the pricing status quo since June has been French-owned dairy giant Lactalis, earning several rebukes from dairy farmer lobby leaders.
EastAUSmilk chief executive Eric Danzi said last month that all processors could afford to lift their farmgate prices higher, given the boost in the GDT and the weakening of the Australian dollar this financial year.
“The farmgate prices on offer this season are all about one thing: the desire by processors to recoup profits from farmers,” Mr Danzi said last month.
“They were screaming from the rooftops last season about the farmgate price — they pointed out the international dairy prices and the Australian dollar.
“Well, guess what? International dairy prices are stronger now, the Australian dollar is weaker.”
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