Bega Cheese announces new season milk price
Bega Cheese has announced a reduction in its opening farm gate milk prices for the 2016/17 financial year.
The dairy company will pay approximately 11 per cent lower across all its supply regions. This equates to a Victoria farm gate milk price of AUD $5.00 per kilogram of milk solid.
In announcing the news, Bega Cheese reminded it maintained its 2015/16 farm gate price despite competitors Murray Goulburn and Fonterra dropping their prices.
“Farm gate milk prices are ultimately driven by returns we receive from markets both within Australia and globally,” Bega Executive Chairman, Barry Irvin said.
“Many of the factors affecting these markets such as global, supply, demand, currency relatives and competitor behaviour are beyond the control of individual companies. Bega Cheese’s long term strategy of building value added business platforms does assist in enhancing the base value of dairy of dairy products and therefore farm gate milk price, but cannot insulate farm gate milk prices from the reality of the markets.”
Bega reported analysts are not expecting an improvement in dairy commodity returns until at least the first half of the 2017 calendar year. The company listed significant growth in global milk supply, Russian sanctions on dairy imports, allowing demand in China and highly competitive markets as having a significant impact on farm gate milk prices globally.
“These are difficult times in terms of farm gate milk prices, we believe our opening 2016/17 prices appropriately reflect the market and are responsible,” Irvin said.
Youfoodz and Meat and Livestock Australia have both made the Advertising Standard’s Board 2017 most ...
AUSTRALIA’s pet food industry would be forced to obey mandatory labelling and testing standards if a...
The results from the CSIRO’s 2016 Healthy Diet Score are in and unfortunately most Australians have ...
A new food franchising group based in Brisbane is set for rapid Australian expansion in 2017.
Coca-Cola Australia has launched the new Frozen Coke® No Sugar – a world-first innovation in the fr...
The Retail Food Group has just missed its revised forecasted net profit for its 2017 financial year.
A record avocado harvest in Australia is set to drive prices down for manufacturers and consumers.
The dairy cattle farming industry should bounce back tin 2018 says market research firm IBISWorld.