Bega Cheese has lifted its opening price for next season to $6.75/kg of milk solids, which means that some northern Victorian suppliers could earn more than $7/kg MS with incentives.
Bega had announced an opening of $6.60/kg MS just a month ago, but competition for milk supply has pushed the company to go higher.
Fonterra is offering $6.60/kg MS and Saputo has opened at $6.80/kg MS.
Bega is paying a 20 cent irrigation rebate to northern Victorian suppliers and all suppliers who choose to lock in for three years can earn a loyalty payment equivalent to up to 17 cents.
Milk supply has been declining in recent months due to the cost pressures of irrigation water and grain for feed.
Saputo has said it is reviewing its prices every three months, while Bega says the prices are under constant review.