The company announced an opening milk price of $4.80 per kilogram of milk solids (kgms), above competitors Murray Goulburn and Fonterra but below Bega.
A downturn in the global dairy market has left many producers across south eastern Australia facing a season where the price they’re paid for milk is below the cost of production.
Most recently, the industry’s peak body, Dairy Australia, revealed it’s been forced to slash its budget as revenue from producer levies tumbles.
WCB was aquired by Canadian company Saputo in 2014.
The ASX-listed company revealed an 87.8 per cent slump in profits at its Annual General Meeting in Melbourne on Monday.
The ASX-listed company revealed an 87.8 per cent slump in profits at its Annual General Meeting in Melbourne on Monday.
Chairman Lino Saputo Jnr has also ruled out any price step downs this season.
«If I look at what all the economists in the industry are saying in terms of China coming back, geopolitical issues starting to align themselves properly, and a shortage of dairy solids, I’m quite confident there will be some step ups as the year progresses,» he said.
Mr Saputo said his company still had high hopes for the dairy industry long term, and he was still interested in taking on more suppliers.
«Part of our strategy for growth and milk intake is coming from our own base [of suppliers], as well as those farmers that choose us to be the home for their milk,» he said.
«Our company is prepared to invest in infrastructure as long as we’ve got the milk.»
«If I look at what all the economists in the industry are saying in terms of China coming back, geopolitical issues starting to align themselves properly, and a shortage of dairy solids, I’m quite confident there will be some step ups as the year progresses,» he said.
Mr Saputo said his company still had high hopes for the dairy industry long term, and he was still interested in taking on more suppliers.
«Part of our strategy for growth and milk intake is coming from our own base [of suppliers], as well as those farmers that choose us to be the home for their milk,» he said.
«Our company is prepared to invest in infrastructure as long as we’ve got the milk.»
Source: ABC
Link: http://www.abc.net.au/news/2016-07-11/wcb-hopeful-of-price-rise/7586570
