Bulla confirms another pre-season step up as Australian dairy strikes gold

Bulla has increased its new-season farmgate milk price for the second time since being the first to reveal its opening rate.

Bulla has revised its 2021-22 opening figure. Picture: Zoe Phillips

Bulla has provided a second pre-season bounce in the 2021-22 season price race — raising its opening figures across the board by 20c a kilogram of milk solids.

The Colac-based processor has now indicated a pricing range of $6.70/kg MS-$7.20/kg MS solids, up from the $6.40/kg-$6.90/kg milk solids range it initially offered in mid-April and the revised $6.50/kg MS-$7.00/kg MS last month.

Bulla dairy general manager Rohan Davies confirmed the second price revision to suppliers over the weekend.

“Bulla Dairy Foods is pleased to announce a $0.20/kg MS increase to the opening milk price for the 21/22 season,” he said.

“The revised price range of $6.70/kg MS up to $7.20/kg MS lifts Bulla’s weighted average price close to $7.10/kg MS.

“The higher opening prices reflect the strength of an improving market with the Bulla family delighted to be seeking additional milk supply in support of several growth opportunities as we move in to our 111th year here in Victoria.

“Suppliers interested in joining Bulla are invited to contact us via the company’s website, or by calling the field service team.”

Last week, Fonterra was forced to lift the weighted average farmgate milk price it offers farmers for the 2021-22 season to $6.85/kilogram MS, after being trumped by its rivals at the June 1 code deadline.

Fonterra came out last month with an offer of $6.55/kg MS, just above what it put on the table at the start of the 2020-21 season, in a bid to lock farmers into contracts ahead of the June 1 mandatory dairy code deadline, by which all companies must table their minimum prices for 2021-22.

But on Tuesday the Kiwi giant’s biggest rivals came out with better offers, with Saputo offering $6.65/kgMS and Bega $6.80/kg MS in southern Victoria and $7/kg MS in the state’s north and Riverina.

Fonterra issued text messages last week stating “revised price for 2021/22 is a weighted

average of $6.85/kg MS.

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