Australian dairy farmgate prices: Burra provides March step up
Criticised for months by farmers, Lactalis has become the final big dairy player to step up at the farmgate. Here’s the latest.
Lactalis has become one of the final major players in Australian dairy to provide a step up to suppliers, with a 15 cent boost per kilo milk solids.
Management at the French-owned dairy giant confirmed the step up for three regions in a letter to farmers, bringing its price to $8.55 per kilogram milk solids with a proviso of “assuming maximum quality.”
The 15 cent step up applies to its northern and southern Victoria catchment regions, as well as Tasmania, building on an $8.25 per kilo milk solids opening price in June to reach $8.40 per klio milk solids.
Producing a number of household brands such as Pauls, Oak, Vaalia and Ice Break, Lactalis downsized its Victorian operations last year with the closure of its Echuca plant with the loss of 70 jobs, choosing to make Bendigo its primary operational base in the state.
The Lactalis move comes less than a week after Burra 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.
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