Dairy Farmers received bad news this week with Murray Goulburn saying they expect to pay farmers $4.80 per kilogram of milk solids but there is worse to come with the opening farmgate milk price being just $4.31 per kgms, a difference of 49 cents between the two.
As reported earlier this year, Murray Goulburn slashed the farmgate milk price for the remainder of the 2015/16 season to between $4.75 and $5.00 per kgms after it’s price was $5.60.
Murray Goulburn have blamed global oversupply as well very low global dairy commodity prices with reports that the amount of milk solids in inventories could make over six billion litres of milk.
There is a belief that prices will recover by six percent over the second half of the 2016/17 financial year though this increase will not put totals back to previous levels.
There is some good news with dairy producer Bega Cheese announcing an opening farmgate milk price of $5.00 per kgms which is 69 better than what Murray Goulburn is offering as it’s opening price.
To read more on Murray Goulburn’s financial status, click here