THE Victorian dairy industry has welcomed Fonterra’s next season opening milk price of $4.75 per kilogram of milk solids, but warned that this falls well below the cost of production for most farmers.
“This price isn’t as bad as we expected, but it’s still extremely disappointing that it’s taken so long for Murray Goulburn and Fonterra to announce their opening prices,” United Dairyfarmers of Victoria President Adam Jenkins said.
“Let’s face it – these two processors made unethical decisions which have left a significant portion industry in Limbo for the last twelve weeks!”
UDV had previously called for greater transparency around the pricing system to build resilience and confidence in farm businesses.
“Dairy processors send letters to all their suppliers to let them know their opening milk prices, but these are far too complicated for anyone to decipher,” Mr Jenkins said.
“We’ve been calling for transparency around the weighted average milk price system for the last three years, because a significant portion of the industry receives substantially less than the weighted average price.
“Fonterra has announced an opening price of $4.75kg/ms, MG has announced a price of $4.31, Burra Foods is $4.50, Warrnambool Cheese and Butter is $4.80 and Bega is $5, but the reality for some farmers is that they’ll be getting an on-farm opening price as low as $3.90.”
UDV is calling on dairy processors to ensure all farmers receive income estimations and a follow up visit.