Bega Cheese announced an opening price of $8.40/kg MS in April.

Goulburn Valley Creamery chief executive officer Mancel Hickey said it was offering higher prices than those currently being offered by other dairy processors in the area to reflect the company’s wish to reward the premium product of its farmer suppliers.

“Northern Victorian farmers that supply exclusively to us will receive a milk price from $8.50 to $8.80 per kilogram of milk solids,” Mr Hickey said.

“The majority of our farmers will sit at the higher end of the band.

“It acknowledges the quality of the milk we are sourcing and is part of our philosophy of taking a long-term approach to building strong partnerships with our dairy farmers.

“Across the board, many of our dairy farmers are facing multiple economic and seasonal challenges, which are not of their making but must be managed.

“By setting a strong, sustainable milk price we are committing our support to ensure they get through these headwinds in a good position and can thrive.”

The facility, which has been operating for more than a year, is processing 100 million litres of milk annually and employs 80 staff and contractors.

“We are seeing increased customer demand for our products, so it is important that we look after and grow our supplier farmers,” Mr Hickey said.

The new prices apply from July 1.