As was the case with Fonterra, Bega Cheese has announced an opening milk price for the 2018-19 season of $5.85/kg of milk solids.
In addition to this, farmers have the option to take up an additional Bega Supply Premium of $0.25/kg MS (two-year premium) or $0.50/kg MS (three-year premium) which will deliver strong cash flow through the upfront payment of the premium.
Depending on the premium taken up, opening prices will be either $5.97 or $6.01.
Gunbower Bega supplier Claire Modra said she was pleased with Bega’s announcement.
‘‘We are happy with the increase just announced,’’ Ms Modra said.
‘‘It takes them closer to where the rest of them (processors) are.
‘‘There’s going to be a lot of competition for milk this year, so hopefully that will push the price up even further.’’
The company’s executive chairman Barry Irvin said a loyalty payment would also be added to this year’s prices.
‘‘I am also pleased to advise that for the 2017-18 financial year, we are paying a final loyalty payment of $0.07/kg MS ($0.05/kg of butterfat and $0.10/kg of protein) taking our average price for Victorian supply to $5.70/kg of MS.’’
The Bega Supply Premium is still available to suppliers who wish to apply up to September 30.