DAIRY farmers in South Gippsland are eagerly awaiting the release of the new season opening price by 2pm Thursday, June 1.
But there’s almost unanimous opinion about one thing, the opening price needs to have “a 9 in front of it”.
United Dairyfarmers of Victoria President Mark Billing has taken that a half step further saying the opening price needs to be between $9.50 per kilo milk solids and $10 to give the right signal to a transitioning industry.
“It’s very different to last season when every processor was putting out a price in the hope of attracting attention and supply,” Mr Billing told the Weekly Times earlier this week.
“This season, the processors are watching each other and waiting for the other to come out with a price first,” he said.
“We need opening prices to be at $9.50 to $10 (per kilo milk solids). The price needs to have at least a $9 in front of it.”
He said there had been a pleasing improvement in world prices recently, and there are hopes of better sales to China, but the export job isn’t the defining factor it once was for the Australian industry.
“The improvement in the GDT last week was welcome but it’s only one factor. Yes, fertiliser prices have come down, but other input costs are rising.
“The cost of labour is going to go up next financial year, the cost of fuel, the cost of electricity. Farmers and processors need to raise prices accordingly, and that may be reflected along the supply chain with consumers paying more as well.”
Small south-west Victorian processor Bulla Dairy Foods recently announced a “price band” of $8.80 to $9.60 per kilo of milk solids, as an opening gambit, but the bigger companies will need to be at the higher end of that bracket, according to local operators.
Berry’s Creek dairy farmer, Cor Koedoot, says it has been a pretty good season and he hopes it stays that way.
But he says the rising cost of inputs including feed, fertiliser and fuel means producers will be looking for a good lead from the dairy companies right out of the blocks.
“It’s been a very good season, I reckon, not too wet and not too dry,” said Cor on the eve of the big day for milk.
“The cows are in good shape, and it’s been good for the young ones too. We didn’t have to pull the calves out of the mud.
“The growing conditions have been perfect, you can see the grass is still nice and green and long so we couldn’t wish for anything more.”
Except one thing…
“We hope that keeps going and they put the price up.”
His comments are echoed by fellow farm operator Mark Dowling who backed Mr Billing’s comments.
“It’s got to have a 9 in front of it.”
So, what’s it going to be when all of the milk companies come out with their prices at lunchtime on Thursday?
