Australian Dairy Farmers Corporation says it has recently acquired 30 million litres of milk from suppliers who have switched from other processors, mostly in northern Victoria.
The Weekly Times understands Bega Cheese is seeking 40 million litres.
ADFC chairman Scott Sieben confirmed his company has offered farmers $5.80 a kg milk solids for the second half of the season.
Mr Sieben said ADFC now had all the milk it sought, although there was scope to pick up another 10 million litres from southwest Victoria.
With the company’s major client, Bulla, based at Colac, Mr Sieben said it was likely to enter into a milk swap with another processor to transfer northern milk to southwest Victoria.
“It is good news for farmers,” he said. “Milk is getting to the stage where it is more valuable.”
The Weekly Times understands most of the new suppliers came from Murray Goulburn.
Murray Goulburn said the co-operative could not provide an update on its October 20 statement that its milk supply would shrink 20 per cent due to poor seasonal conditions and supplier departures as it was in a blackout period ahead of first half results on February 24.
Fonterra, Murray Goulburn and Bega Cheese are also believed to be vying for milk in northern Victoria.
Bega Cheese chief executive officer Paul van Heerwaarden said his company was continuing to source milk to support growth in its value-added products, particularly from overseas buyers.
Bega recently announced a step-up of 26 cents a kg milk solids for January to June, taking its final year price to $5.13 a kg for Victorian suppliers.
“So we’ve got a competitive milk price,” he said.
“There are still reputational issues in the industry from last year and discontent with some of the other milk companies.”
Dairy Australia senior analyst John Droppert said data for July to November showed Victoria’s milk production was 11 per cent lower than 2015-16 but an expected improvement in the second half of the season should see state production end up at 9 per cent lower.
Source: WeeklyTimes
Link: http://www.weeklytimesnow.com.au/news/national/bega-adfc-mg-and-fonterra-seek-more-milk-in-northern-vic/news-story/131ac9874aeef899788a4dfd3f270fc0