Milk price higher than last season

By Country News

Burra Foods has announced an opening farm gate milk price range of $6.40 to 6.70/kg MS for the period July 1, 2019 to June 30, 2020.

In a letter to suppliers, Burra Foods’ chief executive officer Grant Crothers said the announcement represented a 14.5 per cent increase on the opening price for the current financial year.

The announcement comes more than six weeks earlier than last year, with the 2018-19 price announced mid-June last year.

‘‘The price is supported by our confidence in demand for the Burra product range and current outlook for commodities,’’ Mr Crothers said.

He said the timing of the announcement was in direct response to supplier requests for earlier next season price signals.

‘‘The opening FMP range reflects the cash price received by a large majority of supply partners regardless of whether they have already received the FY20 annualised portion of their commitment bonus,’’ Mr Crothers said.

‘‘It excludes any portion of milk solids committed to the Fixed Farmgate Milk Price and is an opening price that may increase by way of retrospective step-ups during the season,’’ Mr Crothers said.

The Burra Foods Milk Supply team will be sending out FY20 income and cash flow estimates to suppliers in the coming weeks.