The falling Australian dollar has boosted the outlook for dairy prices from July.
Since Dairy Australia released its quarterly outlook in May, the dollar has lost nearly 10 per cent of its value.
Murray Goulburn Cooperative has announced a record opening price of $5.60/kg milk solids, a 24 per cent rise .
Coles supermarket chain says it will also pay more to dairy processors, to be passed on to farmers, but it won’t say how much.
John Droppert, from Dairy Australia, says the lower dollar is making a big difference.
«So it’s come down between seven to ten cents, which makes a 45 to 50 cents a kilogram difference to the farm gate milk price, if you’re working for an export company like Murray Goulburn.»
Northern Victorian dairy farmer Peter Costello says the price of dairy on the global stage is now 40 per cent higher than last year, which bodes well for Australian farmers needing to pay down debts.
Source: ABC
