Burra Foods has announced an opening farm gate milk price range of $5.45/kg to $5.65/kg milk solids for FY18.
In a letter to Milk Supply Partners, Burra Foods Chief Executive Officer, Grant Crothers, noted that this was a 23% increase on prior year and is inclusive of the recently announced $0.40/kg milk solids commitment bonus that will be paid upfront to suppliers in July 2017.
Mr Crothers said that Burra Foods continues to invest heavily in capacity at its main processing site in Korumburra, Gippsland and is wanting to see a growth of existing Supply Partners complemented by new Supply Partners.
“After recently spending time in market, I am very optimistic about our ability to respond to increasing demands and maintain our ability to pay a price premium to our Milk Supply Partners.”
“We are confident that depressed dairy prices are behind us and it is satisfying to be able to provide a strong opening price,” Mr Crothers said. “We remain confident in our ability to capture growing demand for the Burra product range.
“This opening price, combined with our commitment bonus initiative reflects our resolve to build a sustainable supply chain and put our Supply Partners in a stronger position to manage their business.”