Burra Foods has announced an increase in its farmgate milk price of 20¢/kg of milk solids for the full season from July 1, 2021 to June 30, 2022.
This follows a 10¢/kg of milk solids increase in January.
A global imbalance in the supply and demand of dairy products had driven commodity prices higher in recent months, Burra Foods chief executive officer Stewart Carson said.
“Decreased milk production in Europe and New Zealand in the second half of 2021 coupled with strong global demand has increased commodity prices over recent months,” he said.
“Burra has continued to be laser focused on maximising value from milk solids and taking advantage of the current global situation.
“Our teams continue to deliver productivity and quality improvements, which has allowed us to be flexible and agile with product mix. This remains one of the core strengths of our business.
“We expect that continued disruptions in supply chains and the conflict in Ukraine will have a material impact on global dairy markets.
“Fuel, fertiliser and grain prices are already trending upwards. We expect this will likely place significant pressure on milk production growth internationally, increasing competition for milk and growing food inflation rates.”
Mr Carson said Burra Foods remained positive and optimistic about the upcoming season.
“The resilience of our milk supply partners and team members in the last couple of years has been tremendous. We have demonstrated that we can continue to navigate through a pandemic and take advantage of a commodity cycle boom whilst supporting the long-term customers with core products that have been the backbone of our business,” he said.