Australian dairy opening prices: Bulla steps up its 2022-23 offering

Australian farmgate milk prices have soared in the past fortnight and just days before the dairy code deadline, Bulla has raised its offering.

BULLA has updated its opening price to a range of $8.70 to $8.90/kg of milk solids with only days to go before the dairy code deadline.

All processors are required by the federal government code to report their opening price for the 2022-23 season by 2pm this Wednesday — several have already flagged their figures.

Bulla was the first processor out of the 2022-23 starting blocks in March, when it provided an opening range of $7.40 to $8.00/kg of milk solids.

However, with a number of processors announcing opening prices in the interim, Bulla has lifted its prices to reflect the growing competition for supply.

Bulla procurement general manager Rohan Davies said a majority of suppliers would receive an opening price in the $8.70 to $8.90/kg of milk solids.

“We’ve seen dairy prices lift substantially in recent years, in particular this year in a competitive milk market,” Mr Davies said.

“We’re happy that dairy farmers around Australia will see the benefit of the current market conditions in their own respective businesses.”

Bulla chief executive Allan Hood (centre) and procurement manager Rohan Davies with Bulla suppliers in south-west Victoria.

South-east Australian farmgate milk prices have soared in the past fortnight, with companies already offering $8.80/kg of milk solids for the 2022-23 season and talk of Coles putting $9/kg on the table.

Mr Davies said the past year had presented a range of challenges with domestic and international supply chain disruptions, rising input costs and other covid-related impacts.

“However, Bulla’s market share and business performance continues to be strong,” he said.

“In addition to having a solid finish to the current year, we are now able to build on this position with the new, updated F23 season pricing to provide a large lift in farmgate value.

“As a 110-year-old family-owned dairy processor, we understand the importance of a sustainable dairy industry and a dependable supply, and a strong return for the hard work of dairy farmers is vital to this. And so we feel proud to be able to pay forward our own growth and performance with existing and new dairy supply partners this year.”