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Bega Cheese announces opening milk price

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Bega Cheese announced an opening milk price of $5.62kg/milk solids yesterday, just days ahead of the new season.

The company stressed however that the $5.62kg/milk solids amount is a weighted average, and the range of opening prices will lie between $5.40 - $5.90kg/ milk solids.

The average is said to be based on the division of net amount paid for milk received, by the total of milk solids produced as reported by Weekly Times Now.

Executive chairman of Bega Cheese, Barry Irvin said that the new season’s price in inclusive of 8 cents a kilogram butterfat and 20 cents a kilogram protein.

“This is the third year in a row that we have provided a new season incentive recognising the importance of cash flow on farm in terms of investing for the coming season,” Irvin wrote in a statement.

“The strong finish to pricing in the 2012/13 year and the significant increase in opening prices for the 2013/14 year are a reflection of both the improved international commodity market and exchange rate combined with strong business performance and long term business strategy.

“I have commented regularly that the milk price will always be driven by market returns for our products and the performance of our business.

“While market returns in the 2012/13 year were disappointing clearly our ability to lead in milk price the 2012/13 year is a reflection of our product mix and sound, long term business performance and strategy.”

Image credit: Kyle May via photopin cc

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