Supplier switch

July 27, 2017

Continued dairy industry pressure is forcing district farmers to change their suppliers.

The decisions are directly related to milk prices being offered by Murray Goulburn this season.

NSW Farmers Association dairy committee deputy chair and Blighty dairy farmer Malcolm Holm said while Murray Goulburn had been able to increase its milk prices this season, it was not on par with other regional suppliers.

‘‘Murray Goulburn is offering $5.20 per kilogram of milk solids, with a range of up to $5.50. But it did initially offer $4.70, which prompted farmers to consider their options,’’ Mr Holm said.

‘‘Other suppliers are offering higher prices, and therefore more stability.

‘‘The milk prices (from Murray Goulburn) are getting to a level where you can start to make a profit, but our inputs are also on the rise and the price offered needs to balance that.

‘‘People are also still carrying a debt from the last 18 months, as a result of low milk prices previously offered and the tough season.’’

Mr Holm said he knows of at least three dairy farmers located between Berrigan and Blighty who have switched suppliers in the last week. He suspects another three or four are still considering their options.

He said those who have switched have either gone to Fonterra or the Wagga based Riverina Fresh which has been sourcing milk from the Finley district for about 10 years.

Fonterra Australia announced an opening milk price of $5.30 per kilogram of milk solids and a range up to $5.80. Coupled with the company’s additional payment of 40 cents/kgMS, the opening price is revised to $5.70 with a range up to $6.20.

Milk prices being offered by Riverina Fresh have not been made public.

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