Burra Foods CEO Stewart Carson has announced a lower-than-last-season FY24 opening milk price, citing global impacts shaped the company's offer.
Burra Foods is offering its suppliers an FY24 minimum farmgate milk price range from $8.50 to $9/kg for milk solids.
"We are quoting a range in which more than 90 per cent of our milk supply partners will sit, rather than a weighted average price which is often difficult for many to achieve," Mr Carson said.
"We are disappointed this price is a reduction on last year, we considered the decreased value in global markets over the last 12 months and the growing un-competitiveness of Australian exports versus other countries.
Australia is the only country in the world that must set a minimum milk price for the next 13 months, yet we trade in volatile global markets."
Burra Foods recently underwent restructure with a focus on improving productivity and reducing costs, with a product mix aimed at improving its foothold and return on investment in domestic markets.
"Our successful launch into cream cheese this year has been further endorsed by the board supporting a capacity upgrade to the facility as we continue to focus on new premium markets and products.
"We are very proud of our contribution to Gippsland and are heavily invested in our local dairying communities.
"In this financial year, we will provide around $250 million back into our communities through milk price, wages and employment, preferential engagement of local contractors and transport providers, and donations to various community clubs and organisations.
"We don't often publicise these initiatives, but we do enjoy knowing we are directly supporting the region in which we exist and ultimately you, our milk supply partners."
Mr Carson said Burra Foods would continue to focus on local suppliers.
"Today is World Milk Day. For more than 30 years, Burra Foods has been partnering to bring the best of Australian dairy to the world and we want to continue this for years to come.
"Our Milk Supply Partnerships are the foundation of our business."
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Jeanette Severs
I research and write articles across a broad range of topics for an agricultural and rural readership. My hours of work are part-time - generally Monday, Tuesday and Friday.
I research and write articles across a broad range of topics for an agricultural and rural readership. My hours of work are part-time - generally Monday, Tuesday and Friday.
