Burra Foods has announced an opening Farmgate Milk Price (FMP) range of $6.40 to 6.70/kgMS for the new season, starting on July 1.
In a letter to milk supply partners, Burra Foods chief executive Grant Crothers said this announcement was notable as it represented a 14.5 per cent increase on the opening price for the current financial year and it was released on May 1, significantly earlier than ever before.
“The price is supported by our confidence in demand for the Burra product range and current outlook for commodities,” Mr Crothers said.
He said the timing of this announcement was a direct response to requests from milk supply partners for earlier ‘next season’ price signals.
“This is another initiative by the Burra team to provide our milk supply partners with superior information and increased certainty to assist them to better run their business,” Mr Crothers said.
“The opening FMP range reflects the cash price received by a large majority of supply partners regardless of whether they have already received the FY20 annualised portion of their Commitment Bonus.
“It excludes any portion of milk solids committed to the Fixed Farmgate Milk Price (FFMP) and is an opening price that may increase by way of retrospective step-ups during the season.”