Bega Cheese has announced a record opening price of $8.40/kg of milk solids for the 2022-23 year, for exclusive supply in the Victorian and Riverina zones.
The company will also deliver a 10¢/kg MS step-up for the current financial year.
Bega executive chairman Barry Irvin said the 10¢/kg MS step-up and milk price increase reflected strong global dairy commodity markets and Bega Cheese’s endeavour to ensure it was delivering a competitive milk price.
“Depending on supplier size and supply profile, most of our suppliers will receive an opening milk price in the range of $8.20 per kg milk solids to $8.60 per kg milk solids for our Victoria, south-east South Australian and Riverina exclusive suppliers,” Mr Irvin said.
“As is always the case when setting milk price, it was important that we considered the returns in both the Australian and international markets, the milk requirements for our significantly expanded portfolio of products and the competitive circumstances in each of our regions.”
Bega executive general manager of beverage operations Mark McDonald said the 2022-23 opening milk prices reflected the strength of Bega’s broader and diversified branded domestic and international dairy business.
Mr McDonald said all exclusive suppliers had a choice of milk price systems that best suited their farming business, that included the introduction of a new flat milk price system to support seasonal supply, broadening the 9/3 milk price system to more suppliers seeking early cash flow signals by including productivity incentives and maintaining a milk price system that supported larger scale and flatter supply profiles.