June 29, 2011

Murray Goulburn to announce opening milk price

Australian dairy company, Murray Goulburn, is expected to announce its opening milk price for the next season within the next few days.

It follows the announcement last week that United Dairy Power (UDP) would open at US$5.30 a kilogramme of milk solids - the best opening price for 2011-12.

Warrnambool Cheese and Butter said it would open at US$4.90/kg of milk solids.

The Murray Goulburn board will meet today, June 29, and chairman Grant Davies said a price would be announced between "the meeting and the end of the financial year".

UDP managing director Tony Esposito said his price reflected the market and he hoped to attract supply.

"It's where we see the market and it's a fair opening. It's not the end of it either, US$5.30 (kg/MS) is the opening, it is not going to be our close," he said.

Dairy Australia predicted an opening price between US$4.60-$4.90/kg of milk solids in May.

Meanwhile a number of UDP suppliers said they were frustrated with the recent milk price increase or "loyalty payment" of US$0.20/kg butterfat and US$0.40/kg protein.

They said the processor only paying the increase on premium milk back-dated until January, and withholding the payment until August, was a "slap in the face".

"Because all I get are complaints from farmers saying it is unfair there is a bonus coming through for everyone when there are a percentage of farmers that don't work on quality," he said.