The step-up takes the average milk price paid by WCB to 5.00kg/MS for the 2016/17 season.
In announcing the increase WCB general manager Richard Wallace told farmers the global dairy market has improved since the opening price of 4.80kg/MS was announced in June.
“Recently there has been signs of a slowdown in global milk production in key dairy regions and demand remains relatively stable,” Mr Wallace wrote in a letter to suppliers.
“Despite these positive signs we maintain a cautious approach as there is still volatility in global markets and the Australian dollar remains strong.
“Dairy commodity levels remain at low levels and it is difficult to predict the extent to which the global dairy market conditions may improve throughout the remainder of the season.
“In this environment average closing prices remain difficult to predict and remain dependent on on the many external factors.
“We will review the milk price again in January 2017.»
The payment is retrospective and will apply to ilk supplied to WCB since 1 July 2016.
Source: DairyNewsAustralia
Link: http://dairynewsaustralia.com.au/item/1513-wcb-announces-milk-price-rise
