The $9/kg minimum price is 12.5 per cent higher than this season’s opening price and 10 cents/kg higher than the 2018-19 closing price.
ACM has also announced a guaranteed minimum price of $6.50/kg MS for conventional milk, but is well behind Bulla’s opening price of $7/kg MS for Band 1 milk for next season, with potential step-ups during the year.
Burra Foods has also announced an opening price for conventional milk of $6.40-$6.70/kg MS.
Pressure will now mount on the major companies — Fonterra, Saputo and Bega Cheese — to release their opening prices.
ACM commercial manager Peter Jones said his company’s new season price for organic milk reflected progress in developing the organic business.
“The development of the organic business is going ahead in leaps and bounds,” Mr Jones said.
“With our own speciality factory at Girgarre and long-term agreements with businesses such as Bellamy’s Organic, we are now better-placed then ever to take advantage of this growing appetite for organic products.”
ACM’s organic price is based on September, October and November payments of $8.20/kg MS and $9.40/kg for the remainder of the year.
ACM released its guaranteed minimum price in February of $6.50/kg MS, with the opening price expected to be announced mid-June.
“But we are expecting the opening price to be substantially higher (than $6.50/kg MS) given the fall in the currency and favourable markets,” Mr Jones said.
Burra Foods chief executive officer Grant Crothers said the company’s opening price range for 2019-20 was 14.5 per cent higher than for this season.
Bulla is offering prices in three bands: $7/kg for Band 1, $6.80/kg for Band 2 and $6.60/kg for Band 3.
They are based on the profiles of supply throughout the year, scaling from Band 1 being a flatter supply throughout the year down to Band 3 being a more seasonal based supply.
The company said the company did not apply stop charges, volume charges or milk collection fees.
Bulla said it had a history of offering prices above the market average.
Source: The Weekly Times
