Water Week

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Drought creates new milk-market: top base farmgate prices hit 52c/L mark for those willing to sign up for five years

Posted by waterweek on 8 October 2007

Milk processors were starting to talk longer-term contracts in a bid to prevent their suppliers from being poached, as the top base farmgate prices hit the 52c/L mark for those willing to sign up for five years, wrote Shane Goodwin in The Land (27/9/2007, p.3).Price guarantees: Sydney-based Dairy Farmers lifted its farmgate prices to most NSW and southeast Queensland farmers by 5c/L from October 1 – a move quickly relayed to Australia’s largest processor of drinking milk, National Foods. Lismore-based Norco announced that, on top of a 5.5c/L from October, it would guarantee a minimum price of 52c/L on a three-year contract from June next year. Norco suppliers signing up for three years could get as much as 46.50c/L, including quality components, for October milk. That was met with an offer from Brisbane-based Parmalat that it would offer a one-, two- and three-cents-a-litre incentive for one-, two- and three-year contracts respectively, on top of its 4c/L base price increase, announced in August.

52c/L possible: General manager farm supply Queensland, Ian Hollindale, said that could take the returns of some Parmalat suppliers willing to sign up for five years to as much as 52c/L.

The Land, 27/9/2007, p. 3

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