Australian Consolidated Milk has provided its first step up this financial year — and international dairy trade is on the up again.
Australian Consolidated Milk has provided its first lift at the farmgate this season, with a 30 cents per kilogram milk solids step up.
In a letter to suppliers, ACM chief executive Jason Limbrick confirmed the 30 cent rise, backdated to January 1 — consisting of 19 cents per kg milk solids butterfat and 42 cents per kg milk solids protein.
Mr Limbrick said the revisions take the conventional farmgate weighted average price to $8.25 per kilogram milk solids, excluding any multi-year sign-on payments.
“We have been able to secure contract pricing at levels allowing us to step forward our second half farm gate milk pricing,” he said.
“Looking forward to next season we are focused on securing offtake for contracted milk solids at levels which supports a positive opening price signal for suppliers while managing the risk around geopolitical and currency factors influencing markets.
“We remain committed to continuing to review on a quarterly basis over the milk season with our next scheduled review planned to follow the completion of June 2025.”
Fonterra is the only major processor to provide a second step up this season. Picture: Zoe Phillips
In December, Fonterra was the first processor to lift at the farmgate for the 2024-25 financial year after a five month period of static pricing across the processing sector.
Arch rivals Saputo and Bega swiftly followed, although most smaller processors did not deviate from their June opening prices until January, generating criticism from farmer lobby leaders.
Last week, Fonterra became the only processor to provide a second step up this season, lifting 20 cents to sit at $8.35 per kilogram milk solids.
The move by the Girgarre-based ACM comes as the Global Dairy Trade index posted another rise overnight, with the headline figure rising 1.6 per cent to reach $US4385 ($A6917)
Whole milk powder posted the biggest rise out of the GDT categories, with a 2.8 per cent boost to settle at $US4171 ($A6579).
Fonterra chief financial officer Andrew Murray said the buoyancy of the GDT was pleasing to see given the instability in commodity markets worldwide.
“It’s a reasonable result (given) there’s a bit of uncertainty in the world at the moment,” he said. “Demand continues to be quite strong, especially in whole milk powder.
“China, South-East Asia, Middle Eastern and African buyers were around the same sort of levels — so wasn’t any sort of big deviations (in the latest GDT session) to what we normally see from a geography standpoint.”
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