Bulla Dairy Foods is the first A to announce a farmgate milk price for the new dairy season in a range of $8.80kgMS – 9.60kgMS. Bulla chief executive Allan Hood said the company is taking a more conservative approach with a milk price lower than the current season as volatility, uncertainty and lower international price benchmarks are putting pressure on margins.
Bulla’s opening price is 60c/kgMS down on current season price across all production bands, equivalent to a 7% cut. United Dairyfarmers of Victoria president Mark Billing said a similar drop across the board is unsustainable and could lead to more farmers leaving the industry, shrinking the milk pool further. Billing said processors need to match massive investments in infrastructure with investment in the milk pool and price or they will end up without the milk to put through it.