June 29, 2007

Australian milk producers celebrate biggest price increase ever

Australia's dairy farmers are celebrating the biggest increase in milk prices ever offered in the country, with top milk processing company Fonterra lifting its prices by a record 40 percent.

Fonterra's move follows a 35-percent jump from processor Murray Goulburn and 30 percent for Bega Milk. Other processors paying more for milk supplies include Warrnambool Cheese and Butter with an opening price 33 percent higher than last year.

Australian Dairy Farmers' Robert Poole says competition between milk processors is good news for farmers as prices has brought higher.

By offering higher prices, the companies want to send really strong signals to the farmers about the profitability of the industry, he said.

Higher milk prices allows farmers to spend more on machinery and farm equipment which would bring the dairy industry further forward, Poole said.