The price reflects the current forecast market returns and may increase throughout the season through retrospective step-ups, according to the Burra Foods Chief Executive Officer Stewart Carson.
Mr Carson said the impact of COVID-19 on global markets and world economies was “unparalleled” and the Burra Foods’ market and product diversification had served the company well through uncertain times.
In a letter to Burra Foods Milk Supply Partners, Mr Carson explained how the milk processor had adapted to changing market conditions.
“We understand as well as you do that the dairy industry can be extremely volatile at times and many of these external influences are out of our control,” he said.
“What we can do though is continue to build strong and reliable long-term partnerships that can underpin both our business and yours.”
“Exporting our value-added products across 27 countries together with our access to the domestic market in Australia provides us with a diverse portfolio of customers and products to spread our risk and assist with managing this volatility.”
“We continuously strive to be both agile and responsive to the market.”
Mr Carson thanked Burra Foods Milk Supply Partners throughout Gippsland for their support during the past 25 years.
“It is these long-term relationships that form the backbone of Burra’s milk supply and we certainly value and appreciate your contribution to our business over the journey,” he said.
“Similarly, we also value the long-term relationships we have with our customers.
“It is these relationships on both sides of our business that form the basis for what has become a successful, reliable and stable supply chain of dairy ingredient manufacture from the farmgate to the end user.”