International prices rising, dollar falling? Who will be the next processor to provide a step up to dairy farmers?
Bulla has flagged a price review in mid-February as international dairy commodity prices continue their upward trajectory heading towards autumn.
This week, Australian Dairy Farmers Corporation provided the biggest farmgate lift this season — rising 20 cents to sit an average of $8.40 per kilo milk solids.
Fonterra was the first to lift this season with a pre-Christmas jump of 15 cents to sit at a weighted average milk price of $8.15 per kilo milk solids.
Both Bega and Saputo swiftly followed in the lead up to the festive season with yuletide step ups of 15 cents each.
However, smaller processors apart from ADFC have been slower to move, with Australian Consolidated Milk ruling out a summer step up recently.
Bulla Dairy Foods chief executive Allan Hood said his processor would review their price earlier, with an announcement scheduled in the coming weeks.
“At our Christmas farmer forums, Bulla made a commitment to our farming partners to review our position mid-February allowing us to assess our peak Christmas and summer trading period. This is a commitment we are still holding to,” Mr Hood said.
Other medium-sized processors were more circumspect about step up prospects.
Burra, Frestine, KyValley and Lactalis were also contacted for comment.
ACM chief executive Jason Limbrick announced in January that the next pricing review was “planned to follow the completion of March 2025.”
The Global Dairy Trade index this week registered one of the biggest jumps to its headline figure this financial year.
With 3.7 per cent lift to reach $US4296 ($A6868), Fonterra senior executive Richard Allen said several GDT categories had registered strong growth in recent months.
“At the beginning of the season, we were sitting at $US3000 per tonne (for whole milk powder). We’re over $US4000 (per tonne) now,” he said.
“This is a real good news story across the season. So we’ve seen China come back into the market.”
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