This payment is retrospective and applies to milk supplied from 1 July 2017. The payment will be made with September 2017 proceeds during October 2017.
This increases Warrnambool’s average milk price for the 2017/18 season to $5.60 per kilogram milk solids.
In a statement, the milk processor said:
“Global markets continue to be relatively well balanced. There are some signs that global milk production may be recovering in key regions including the EU, US and NZ. At this early stage of the season, it is not clear what impact, if any, this may have on market dynamics going forward.
“Since our opening price announcement demand and trading conditions have been relatively stable across most of our products.
“The skim milk powder market remains weak and continues to be weighed down by high global inventory levels and we have also seen some strengthening of the Australian dollar. With these factors in mind we maintain a cautious approach.
“We will continue to monitor the market and review the milk price again in January 2018 in accordance with our quarterly review process.”