Union Dairy Company reveals 25 cent milk price step up

UDC chief operating officer Andrew Wellington said the additional 25 cents/kg MS was applicable to all solids supplied this season to date.

"We recognise that the second half of the season will be a tough one, given the spring we've had and our intent is to provide our suppliers with some added certainty to plan for increased feed, fertiliser and energy costs," Mr Wellington said.

"This step up takes our average farm gate milk price to $9.90/kg, with a second half average monthly milk price of $10.40/kg."

READ MORE: Skyrocketing input costs eat into dairy margins, despite record milk prices: ADF president

Mr Wellington said the company also offered the 'UDC Exchange', which is a platform where suppliers could purchase feed and fertiliser at group buying rates.

The rise follows a step up announced by Australian Dairy Farmers Corporation in November.

The increase took ADFC's average price to $9.90/kg MS.

Split into six-month payment periods, the price paid is $9.50/kg MS between July and December and $10.30/kg MS from January to June 2023.

Opening prices this year hit record levels, with Colac processor Bulla Dairy Foods pushing the price to a new record high.

Opening prices had to be locked in by the end of June and Bulla, which was the first processor to announce a figure for the season of $7.40-$8.00/kg MS, closed out the financial year with a range of $9.40-$10/kg MS.

All major Victorian processors offered more than $9/kg MS.

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