Revised MG milk price a sensible step forward

United Dairyfarmers of Victoria has welcomed a revised opening milk price of $5.20 per kilogram of milk solids from Murray Goulburn.
Murray Goulburn earlier this month announced a conservative opening of $4.70/kg before raising it by 50 cents to better reflect the current market price.
“Murray Goulburn has made a sensible decision to step up their milk price after listening to its supplier base,” UDV President Adam Jenkins said.
“They’ve taken a positive step forward but many farmers across Victoria are still recovering from last season’s milk price cuts.”
The UDV has urged processors to pass any upward movements in the milk market onto farmers, with many farm businesses expected to remain challenged into the new season.
“We’re encouraging farmers to do their own numbers on their own farms with their own system and processors.
“By doing this, farmers will get a clearer picture of their true milk price, rather than the weighted average price announced by the processors.”
Mr Jenkins acknowledged the early price announcement as evidence Murray Goulburn and other processors had listened to the farming community and broader dairy industry.
“It’s good to see Murray Goulburn come out early with a revised price because it gives farmers time to plan their budgets for next year, when in the past these decisions would happen after the season has started,” he said.
“As far as dairy farmers are concerned, all major companies need to announce opening prices before July.”
UDV members passed a motion at its annual conference in May calling on all processors to announce opening milk prices by early June.