Fonterra was the latest of the big dairy companies to lift their farm gate milk price in the last week of the old financial year.
Fonterra lifted its offering to an average of $9.20/kg milk solids for the 2023-24 season.
The 20 cent price increase comprises 17¢/kg of butterfat and 24¢/kg of protein.
Saputo Dairy Australia’s last price offer came in at about $9.15 to $9.30/kg MS for exclusive supply in the 2023-24 season.
Bulla Foods lifted its price to a range of $9.10 to $9.90/kg last week.
Bulla general manager of procurement Rohan Davies said they increased the price by 10¢/kg MS for the 2023-24 season.
“The higher opening price reflects our approach and commitment to offering our valued milk partners competitive pricing and we are grateful for the support demonstrated by our existing and new suppliers that have joined for the 2023-24 season,” Mr Davies said.
Under the mandatory dairy code, processors are required to offer a minimum farm gate milk price for supplies for the next season by June 30.
Bega Cheese shares reached a 10-year low of $2.80 last week as brokers speculated that the company was paying too much to secure milk, in comparison to international commodity prices for milk.
While the company has reported growth in sales volumes for its branded products it has acknowledged the disconnect between farm gate prices and the declining global dairy prices.
As a result the company was forecasting earnings in the low end of its previously advised range of $160 million to $190 million for the 2023 financial year.
The year will include the income from the $114 million sale of the Bega-owned Vegemite factory in Port Melbourne. Bega will lease back the site for an initial 15 years.
