Prices are being pushed to record highs by processors trying to secure supply for next season. Bega is the latest processor to hike prices. In a letter to suppliers, Bega confirmed a forecast price of $9.10kgMS, up from $8.80kgMS. Bega suppliers in Northern Victoria and Riverina are looking at an opening price of $9.25kgMS, up from $8.90kgMS. Bega chairman Barry Irvin said the processor has carefully reviewed the market since revising its opening prices on 1 June 2022, saying the competitive market for milk is very strong with companies adjusting milk prices over recent weeks.
Last week, Saputo and Fonterra lifted their average forecast milk price to $8.80kgMS while Lactalis lifted its range to $9.20kgMS – $9.30kgMS for the 2022/23 season.
Our calculation of the average announced southern region forecast prices (weighted for estimated milk intakes) had lifted slightly about $9/kgms.