Murray Goulburn Co-operative Co. Limited (MG) has today announced an increase in its opening price to $5.20/kg milk solids
This represents an increase from the previously announced opening of $4.70 Kg.
The company has also extended its forecast for the whole season from $5.20 to $5.50/kg.
Murray Goulburn said the previous opening price announcement on June 6 was earlier than in prior years in order to try to assist suppliers with budgeting and business planning.
"Since then, MG has had the opportunity to review the 2017/18 budget assumptions, which include dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5 billion litres,'' the company said in a statement.
"The updated farmgate milk price has also taken into account improved commodity prices reflecting anticipated market returns, together with additional contracted sales.