Friday, July 8, 2022

Murray Goulburn targets a $6 milk price

Australia’s largest dairy company today announced that they are targeting an end of season milk price in the range of AU$5.95 – AU$6.20 per kilogram milk solids (kgMS).   Devondale – Murray Goulburn (MG) announced a step-up in the farmgate price for the 2013/14 season of $0.09 per kilogram butterfat and $0.19 per kilogram protein. This step-up takes Devondale – MG’s weighted-average, available price to $5.86 per kilogram milk solids, and has brought its season forecast up to around the $6 mark.  However the company cautions that “external factors including fluctuating international commodity prices and currency movements may result in a final price that is higher or lower than this forecast”.   This is the second increase in the 2013/14 milk price since Devondale – MG announced their opening milk price for this season.   Devondale-MG Managing Director, Gary Helou, said: “Since increasing our opening price in late June, we have seen the international dairy market for key ingredients remain strong and the outlook for the Australian dollar remain relatively weak compared to last year.” “These factors combined with our ongoing focus on delivering value through improved business efficiencies and innovation, has meant that we are able to pass additional benefits to our farmer supplier/shareholders. “This step-up provides a further $30 million into Devondale – MG farm cash flows and follows our announcement in June to lift the previously announced record opening base price by $0.13 per kilogram milk solids. “After a difficult season in 2012/13, we are pleased to be able to deliver higher farm returns and we remain optimistic about market returns for the remainder of the year,” Mr Helou said. 
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