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Murray Goulburn announces step-up

Murray Goulburn has lifted this season’s price to about $6.81/kg/milk solids. In its sixth step-up for the year, the company said it was lifting its price by 0.9¢/kg butterfat and 0.19¢/kg/protein.

June 10, 2014 3:15am

Murray Goulburn has lifted this season’s price to about $6.81/kg/milk solids.

In its sixth step-up for the year, the company said it was lifting its price by 0.9¢/kg butterfat and 0.19¢/kg/protein.

Managing director Gary Helou said external factors including fluctuating international commodity prices and currency movements would continue to be key factors in determining the final price.

‘‘This step-up will deliver an additional $31million to MG dairy farmers to support business cash flow.

‘‘When this is combined with the five previously advised step-ups, MG has added $247million to farmgate returns since announcing a record opening price for the 2013-14 season last July.

‘‘The continued focus on improving performance through reducing costs and investing to support innovation and value growth contributed to this step-up.’’

He said market demand for key dairy ingredients remained strong, but increased milk supply from New Zealand, Europe and the United States had led to recent declines in prices.

‘‘Nevertheless dairy ingredients prices remain above historical average levels. The Australian dollar continues to be stubbornly higher than we expect it to be and remains a source of risk to next year’s farmgate milk prices,’’ Mr Helou said.

Meanwhile, the Australian Dairy Farmers Co-operative has announced an opening milk price of $6.53 for suppliers to its Bulla Foods contract near Colac.

The price comes with a commitment to increase, if Murray Goulburn hits the $6.53 figure.

Chairman Scott Sieben said they had already found sufficient suppliers for the new 120million litre contract and had a waiting list of about 80million litres.

For the five suppliers for the ProCal contract in northern Victoria, the co-operative expects to announce an opening price within the next two weeks.

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