In a letter to Milk Supply Partners, Burra Foods Chief Executive Officer, Grant Crothers said that this announcement is notable as it represents a 14.5% increase on the opening price for the current FY19 year and it was released on May 1st, significantly earlier than ever before.
“The price is supported by our confidence in demand for the Burra product range and current outlook for commodities,” said Mr Crothers.
Mr Crothers explained that the timing of this announcement is a direct response to requests from our Milk Supply Partners for earlier ‘next season’ price signals.
“This is another initiative by the Burra team to provide our Milk Supply Partners with superior information and increased certainty to assist them to better run their business,” Mr Crothers said.
“The opening FMP range reflects the cash price received by a large majority of supply partners regardless of whether they have already received the FY20 annualised portion of their Commitment Bonus
“It excludes any portion of milk solids committed to the Fixed Farmgate Milk Price (FFMP) and is an opening price that may increase by way of retrospective step-ups during the season.”
The Burra Foods Milk Supply team will be sending out FY20 income and cash flow estimates to Milk Supply Partners in the coming weeks.