Devondale – Murray Goulburn (MG), Australia’s farmer-controlled dairy food company, has announced a second step-up in the farmgate price (apart from NSW – Sydney Region) for the 2013/14 season.
This second step-up will see butterfat and protein increase by $0.09 per kilogram and $0.19 per kilogram, respectively.
New prices will drive Devondale-MG’s weighted-average available price to $6.00 per kilogram milk solids.
Positive trends have also seen the company increase its end of the season price forecast to somewhere in the region of $6.10 – $6.30 per kilogram milk solids.
With regard to the recent step-ups in farmgate price and the company’s future plans, Devondale – MG Managing Director, Gary Helou said “Since our record opening price in late June we have seen the international dairy market for key ingredients remain strong, underpinned by strong global demand particularly for whole milk powder which continues to trade at high levels.”
“The Australian dollar has traded at lower levels but has recently strengthened and remains a source of risk to current full year forecast.”
“These factors combined with our ongoing focus on delivering value through improved business efficiencies and innovation, has meant that we are able to pass additional benefits to our farmer supplier/shareholders – our Co-operative’s main objective.”
According to Mr. Helou, the step-up provided a further $32 million into Devondale-MG farm cash flows throughout 2013/14.
He also reiterated the company’s intention to deliver higher returns to its dairy farmer-shareholders through operational excellence and innovation.
“Each year, each step-up in milk price further highlights the vital importance of a successful farmer-controlled dairy co-operative to drive industry success and growth.”
Murray Goulburn was formed in 1950 and remains a 100% dairy farmer controlled company. It is Australia’s largest dairy food exporter, manufacturing approximately three billion liters per year, or one third of Australia’s milk.