Goulburn Valley Creamery puts out 2022-23 opening milk prices

Milk supply is tight with two processors already fielding prospective prices. Now a third has competitively entered the fray.

A new dairy processor has become the third processor to enter the opening price race for next season as milk supply tightens.

Goulburn Valley Creamery today announced an opening milk price of up to $8.80 per kilogram of milk solids for 2022-23 for exclusive supply.

Part of the Henry Jones and Co group, known for grocery brands such as IXL marmalade and Taylors dressings, GVC was established in northern Victoria only two years ago.

Goulburn Valley Creamery chief executive Mancel Hickey.

GVC chief executive Mancel Hickey said the processor’s $8.50 to $8.80 per kilogram of milk solids was a higher price range than that offered by competitors in the region to date.

“The majority of our farmers will sit at the higher end of the band,” Mr Hickey said.

“It acknowledges the quality of the milk we are sourcing and is part of our philosophy of taking a long-term approach to building strong partnerships with our dairy farmers.”

Bulla was the first processor out of the 2022-23 starting blocks, confirming in March an opening price of $7.40 to $8.00 per kilo milk solids.

Bega was the second processor to join the fray last month with an opening milk price in the range of $8.20 to $8.60 per kilo milk solids.

While the record prices have been touted by processor bosses, inflation has eroded profit margins with prices for some fertilisers trebling or even quadrupling in the past 12 months.

Mr Hickey said his processor understood the current challenges faced by the dairy sector.

“Across the board, many of our dairy farmers are facing multiple economic and seasonal challenges, which are not of their making but must be managed,” he said.

“By setting a strong, sustainable milk price we are committing our support to ensure they get through these headwinds in a good position and can thrive.”

All processors must publish their opening prices by a June 1 deadline as stipulated by the Federal Government’s mandatory dairy code of conduct.