Murray Goulburn (MG) has announced a 15c kg/ms step up to its farm gate milk price.
The company said farmers would now receive a weighted average of $4.46kg/ms, after the Milk Supply Support Package (MSSP), which was being reviewed, of 14c had been repaid. For farmers who elected to pre-pay their MSSP, the average available farm gate milk price would be $4.60kg/ms.
The company was also forecasting the milk price would rise by eight cents, to $4.88kg/ms, this financial year.
MG’s interim chief executive David Mallinson said while market conditions remained volatile, the company had been able to capture some of the current uplift in prices to pass on a step up and predict a modest increase in the full year forecast.
“Whilst international dairy markets have improved recently, they remain below historical average levels,” Mr Mallinson said.
“Recent signs of recovery have come as global milk supply slows year-on-year.
“However, commodity prices and the strength of the Australian dollar remain a source of risk to current full year forecast.”
In June, MG announced an opening milk price of $4.31kg/ms, for those on the support package.
It predicted a closing price of $4.80kg/ms for the financial year, after cutting its payment from $5.60kg/ms.
Mr Mallinson said the company remained determined to deliver higher returns to supplier shareholders, through “operational excellence and innovation.”
“We have recently announced significant headcount reductions within the business and continue to review all other costs to support this objective,” he said.