The updated FMP has also taken into account improved commodity prices reflecting anticipated market returns, together with additional contracted sales.
Murray Goulburn has announced an increase in the 2017/18 season opening Southern Milk Region Farmgate Milk Price to $5.20/kilogram of milk solids.
This includes the Reward Program and other incentive payments.
The co-operative has also announced an increase in the higher end of the forecast 2017/18 full year FMP range to $5.20-$5.50/kg MS.
The previous opening price announcement on 6 June 2017 was earlier than in prior years in order to try to assist suppliers with budgeting and business planning.
Since then, MG has had the opportunity to review the 2017/18 budget assumptions, which include dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5 billion litres.
The updated FMP has also taken into account improved commodity prices reflecting anticipated market returns, together with additional contracted sales.
MG recognises that in the current competitive environment it needs to maintain milk supply and provide improved cash flow for suppliers. The decision to revise the opening price to $5.20/kg MS is intended to assist in maintaining competitiveness and support the supplier base.