Executive director of the Global Dairy Platform, Donald Moore, recently told an Australian audience that the biggest future threat to the world dairy industry could be synthetic milk.
We're getting close to the peak of the production season in southern Australia, in one of the most tumultuous periods in the recent history of the industry. In the past 18 months, an unprecedented volume of milk has moved between major dairy companies in a short space of time, and most likely has some way to go yet, as the aftershocks of the major step-down in milk prices towards the end of the 2015-16 season continue to reverberate.
Murray Goulburn will consider debt funding of up to $100m to shore up the current farmgate price of $5.20kg milk solids (MS).
Murray Goulburn has raised its opening price by 50c/kg milk solids to $5.20/kg barely two weeks after its initial offering of $4.70/kg.
Farmers have been surprised and in some cases angered by Murray Goulburn’s lower than expected opening prices, however some are adopting a measured response.
Brian McLaren has been a loyal Murray Goulburn supplier for 48 years but the latest price blow could be the final straw.
Murray Goulburn will open the new season at $4.70/kg milk solids with a forecast closing price of between $5.20kg and $5.40/kg MS.
Fonterra will pay an “additional” monthly payment of 40c/kg milk solids on top of a forecast 2017/18 milk price of $5.30-$5.70kg/MS in a bid to retain milk supply.
Murray Goulburn will pay suppliers $4.95/kg milk solids for the current season and will repay clawback funds to existing and returning suppliers. It will also close its manufacturing facilities at Edith Creek, Rochester and Kiewa.
The ACCC has instituted proceedings in the Federal Court against Murray Goulburn, alleging it engaged in unconscionable conduct and made false or misleading representations in contravention of the Australian Consumer Law.