Murray Goulburn increases farmgate milk price
Murray Goulburn is now paying an additional 15 cents more per kilogram of milk solids for its 2017 financial year Available Southern Milk Region Farmgate Milk Price (FMP).
Its suppliers will now receive a weighted average FMP of AUD $4.46 per kilogram of milk solids after application of the milk supply support package.
At the same time, Murray Goulburn has also increased its forecasted 2017 financial year FMP to AUD $4.88 per kilogram of milk solids.
Murray Goulburn’s Interim Chief Executive Officer, David Mallinson, said although market conditions remain volatile, Murray Goulburn has been able to capture enough of the current uplift to pass on the increases.
“Whilst international dairy markets have improved recently, they remain below historical average levels,” Mallison said.
“Recent signs of recovery have come as global milk supply slows year-on-year. However, commodity prices and the strength of the Australian dollar remain a source of risk to current full year forecast,” he stated.
“Murray Goulburn remains determined to deliver higher returns to its supplier shareholders through operational excellence and innovation. We have recently announced significant headcount reductions within the business and continue to review all other costs to support this objective,” he said.
The increase comes a week after Murray Goulburn announced it was reviewing its milk supply support package for its farmers after conceding it was not addressing the main concerns of many of its farmers.