A loyalty payment and price rise is on the way for suppliers of Tatura Milk.November 6, 2012 4:04am
Tatura Milk has announced a loyalty payment and price increase of 16¢/kg fat and 40¢/kg protein for its suppliers.
Tatura chairman Barry Irvin has told suppliers there have been improvements in international markets in combination with improved business performance at Tatura Milk and parent company Bega Cheese.
‘‘The international market place has firmed largely as a result of the tightening of supply from Northern Hemisphere dairy exporting countries,’’ Mr Irvin said.
‘‘While we have seen improvement in the market it has not been entirely consistent or across the full range of dairy products and we are therefore cautious in our view of the likely outcomes for the remainder of the year.’’
The loyalty payment will be paid on milk supplied from July 1, 2012 to October 31, 2012 and the price increase will apply to all Premium and Choice milk supplied from the start of November.
The price rise should take the average price to about $4.75
Mr Irvin said the board was aware of the impact of the decrease in farm gate returns and the consequential cash flow effect of opening prices for the 2012-13 year.
He said opening prices reflected the significant volatility and decline in international dairy commodity pricing.
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