Opening milk prices leap to record highs
Dairy processors are battling tooth and nail for milk supply, creating one of the most impressive line-ups of opening milk prices ever seen.
On June 1 processors across the country published their milk supply agreements (MSAs), giving dairy farmers time to shop around and lock in a buyer by July 1, which is when the new dairy year begins.
Country News has brought together all the milk prices available in the northern Victoria and southern Riverina zones to compare the goods.
THE BIG GUYS
Fonterra Australia: $8.25/kg MS (exclusive)
For exclusive suppliers the opening average weighted milk price is $8.25/kg MS.
For non-exclusive suppliers in the northern Victorian region the estimated weighted average milk price is $7.75/kg MS.
Fonterra does not offer specific MSAs for NSW farmers.
Saputo Australia: $8.50/kg MS (non-exclusive)
Non-exclusive suppliers are being offered a weighted average milk price of $8.50/kg MS.
In addition, Saputo is shaking things up this year and offering exclusive MSAs in the northern Victoria/Riverina and south-west Victoria/South Australia regions.
“We see the introduction of exclusive MSAs as a necessary step in response to changed market conditions in these regions,” Saputo Australia said.
These exclusive agreements will offer a premium of about $0.15/kg MS on top of the non-exclusive milk price.
Bega Cheese: $8.90/kg MS
Northern Victoria and southern NSW farmers benefit from being close to the Tatura Milk factory and are being offered a higher average milk price of $8.90/kg MS.
For those outside the Tatura Milk region the opening average milk price is $8.80/kg MS.
These prices are record-breakers for Bega Cheese, which is encouraging farmers to investigate its many milk price systems and growth incentives.
Goulburn Valley Creamery: $9.10/kg MS
Located in dairy heartland at Kyabram, Goulburn Valley Creamery is fighting to increase milk supply.
In early May the processor announced a peak opening milk price of $8.80/kg MS, but on June 1 this was ratcheted up to $9.10/kg MS for both exclusive and non-exclusive supply.
Noumi: $8.50/kg MS (base price)
Noumi is the new name of Freedom Foods.
Located in Shepparton, the processor is offering a base price of $8.50/kg MS for exclusive and non-exclusive suppliers.
Bulla Dairy Foods: $8.90/kg MS (band 0)
Band 0 suppliers will receive an opening milk price of $8.90/kg MS from Bulla.
Bulla’s ‘bands’ are based upon the average solids profile of a farm over the past two years. Band 0 suppliers must have a milk supply ratio (MSR) of over 49 per cent.
The opening milk prices for the other bands are: band 1, $8.70/kg MS; band 2, $8.50/kg MS; and band 3, $8.30/kg MS.
Exclusive Bulla suppliers don’t have any tier pricing.
Kyvalley (supplies A2 Milk Company)
Kyvalley is offering a base milk price of 55¢/litre for northern Victoria suppliers.
Seasonal incentives which peak in autumn are also offered, or a supplier can choose a flat milk incentive which pays an extra 8¢/litre every month.
The Wagga Wagga-based processor is looking for exclusive supply and will pay $5.87/kg of fat and $12.83/kg of protein.
This price will dip over spring but come back for summer and autumn.