MG increases farmgate milk price

Murray Goulburn (MG) has announced a further increase in its farmgate milk price for the 2012/13 season. The new pricing puts butterfat at 8 c/kg and protein at 20 c/kg, taking MG’s weighted-average, available price to $4.77 per kilogram milk solids.

MG’s managing director Gary Helou attributed the step up in price to increased milk supply into MG plants and lower operating costs.

“While market conditions remain volatile, particularly the level of the Australian dollar, there has been some rebalancing of supply and demand for dairy products globally with the drought in the USA a notable factor,” an MG statement said. “This has seen an increase in the price of some key dairy ingredients in recent months.”

“The increase in milk price is effective from 1 October 2012 with retrospective payment on premium and base quality milk for the period 1 July 2012 to 30 September 2012 and will be paid in cash on 15 November 2012,” the statement said.

MG also announced it will increase the full-year forecast milk price from its previously stated range of $4.70 to $4.90 per kilograms of milk solids to $4.80 to $5.00 on a weighted-average, available price basis.

“Our focus remains on delivering improvements in our operating efficiency and marketing reach and the passing of these benefits to our dairy farmer/shareholders in the form of higher returns as soon as possible,” the MG statement said.