Warrnambool Cheese & Butter (WCB) have announced their final 2013 and opening 2014 milk prices.
The average opening milk price is approximately 25 percent higher than last year at $5.65 per kilogram according to a recent statement from the company. WCB’s forecasted full price range is $5.90 to $6.10 per kilogram of milk solids, and will be subject to a quarterly price review process.
WCB’s CEO David Lord, said that the price reviews will be undertaken due to the volatile nature of the industry.
“As the Industry has experienced in recent years, markets and exchanges rates are volatile and can move very quickly in a positive or negative direction. In this environment we need to be aware that this volatility can impact on the industry and on milk prices paid,” he said.
The 2012-13 season will see a step up of six cents per kilogram for butterfat and 15 cents per kilogram for protein. This will serve as a retrospective payment with the new rate applying to milk supplied from 1 July 2012. A statement from the company says that the payments will be made from June 2013 proceeds in July this year to current milk suppliers.
Lord said that the increases represent a strong competitive milk price for suppliers.
“This increase once again delivers on WCB’s commitment to delivering a strong competitive milk price for our suppliers in a very difficult year and takes our final average milk price to $5.00 per kilogram milk solids equivalent.”
The recent improvement in global dairy prices and the easing of the Australian Dollar poses as a positive outlook for the industry, however Lord says that the company will remain cautious in the coming months.
“These movements have been very positive and give us confidence in our outlook for the first half of the season where we anticipate world dairy prices will remain strong. Given the volatility of the many external factors, such as; milk supply growth, market demand, world dairy prices and exchange rates make it difficult to predict in the longer term, we maintain a cautious approach to the second half of the year.”
The announcement has come after Murray Goulburn announced its early opening price of $5.60, a month premature of the new season starting date.