The Victorian company is increasing its forecast closing price 10 cents per kilogram, to a range of $4.50-$4.70 per kilogram of milk solids.
It comes days after rival processor Murray Goulburn cut its forecast final price due to a loss of suppliers and wet weather.
Burra Foods CEO Grant Crothers said he does not think the weather will have as significant an effect on his company.
«We’ve come off the bottom,» he said.
«We’ve been scraping along the bottom for a while, and this is a vote of faith in the markets strength, and that we won’t be going backwards in price.
Mr Crothers said that he had no special insight into other processors but said he believed his company would be less affected by weather than other processors like Murray Goulburn, which announced a reduction in its forecast closing milk price last week.
«The north of Victoria is in a bad way, and is suffering with this moisture, which the eastern region where we’re involved.
«It’s wet and I know it’s difficult getting onto paddocks to cut silage, but I don’t think we’re going to seer the retraction in supply that we’re going to see in the north.»
Source: ABC
Link: http://www.abc.net.au/news/2016-10-24/burra-announces-price-step-up/7960020
