Northern farmers trying Milk Exchange

By Geoff Adams

Jun 4, 2021

Northern Victorian farmers are among the most active in offering milk on the new Milk Exchange, but no sales have been recorded yet.

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The Milk Exchange is a novel platform bringing buyers and sellers of milk together, but the two groups have been too far apart, so far, to achieve a sale.

At the fourth trading day, on June 2, 122 million litres of farm milk was offered at an average offer price of $7.43/kg milk solids.

But buyers were looking for milk in the $6.70 to $7.20 range.

The spread (gap) between average offer prices and average bid prices was $0.56/kg MS in Victoria.

Northern Victorian dairy farmers offered a total of 38 million litres of milk, by far the biggest volume from any of the NSW and Victorian regions participating, and at the lowest average price of $7.15/kg.

There were 14 bids made on 39 per cent of the milk volume on offer. At the close of the auction, milk suppliers maintained their offer prices.

The exchange operated only the day after milk prices were disclosed nationally.

The next trading event will be on Wednesday, June 16 between 10 am and 2 pm.

By Geoff Adams

Shepparton News assistant editor