1. Why Milk Prices Are Low

Dairy co-ops will likely be forced to heavily discount milk prices in the coming months as a result, going below the current futures price for benchmark Class III milk, which goes into making. Dairy co-ops will likely be forced to heavily discount milk prices in the coming months as a result, going below the current futures price for benchmark Class III milk, which goes into making. UK, GB and NI Farmgate Prices Published 11 December 18. The Defra average farmgate prices represents the average price paid by dairies for all milk purchased in the month. It is a weighted average calculated from information collected on total value and volumes of purchased milk in England, Wales, Northern Ireland and Scotland.

Australian dairy farmers say they will struggle to break even this year with the major milk processors unveiling prices below the cost of production. The industry hit crisis levels earlier in the year when Murray Goulburn, which processes a third of Australia's milk, and New Zealand giant Fonterra suddenly and retrospectively cut the prices they pay farmers. Ahead of the season starting on July 1, ABC Rural spoke with farmers from each of the major dairy companies - Murray Goulburn, Fonterra, Bega Cheese and Warrnambool Cheese and Butter - to get their take on the new prices for southern suppliers. Nick Renyard: Warrnambool Cheese and Butter. WCB milk prices Year Open price Final price 2016-17 $4.80 2015-16 $5.60 $5.60 2014-15 $5.86 $6.10 2013-14 $5.65 $7.00 Price is per kilogram of milk solids for southern suppliers Mr Renyard expects he will receive slightly below that, around $4.60kg/ms, which would be.

Why Milk Prices Are Low

'We've just been working with a consultant for the last couple of years to de-risk the business where we can,' he said. 'Some of that past work will pay off this year. But we're just madly trying to find ways that we can pull our costs back.' Reducing cow numbers, opting for home-grown feed and repairing machinery themselves are the options the Renyards are considering to cut their costs. But Mr Renyard said one of the biggest factors in his farm profitability was seasonal conditions. He said a good season could improve the cost of production by 15 cents per kilogram of milk solids.

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'A 15-cent reduction in costs will just come about by hopefully having a good season,' he said. Ronnie Hibma and Brodie Game: Bega Cheese. Bega milk prices Year Open price Final price 2016-17 $5.00 2015-16 $5.60 $5.60 2014-15 $6.00 $6.00 2013-14 $5.62 $6.73 Price is per kilogram of milk solids for southern suppliers 'The alternative [prices] were looking pretty ugly,' he said. 'We feel a lot more confident going into this next season.'

Bega, like Warrnambool Cheese and Butter, retained their prices when Murray Goulburn and Fonterra cut earlier in the year. Despite his company not cutting its price Mr Hibma started to review his business in an attempt to cut his production costs. 'Basically the day MG announced what they announced we had a good look at the business,' he said. 'We saw a need to run [the business] more efficiently and make any savings we could. 'We have made a few really tough decisions but feel the business really needed to make them and we feel good about going into this season now.' Rural news in your inbox?

For the national headlines of the day. The price New South Wales farmers receive from Bega is higher at $6.08kg/ms, down around 11 per cent from the previous season.

Free full album downloads zip. While some larger established properties will be better able to absorb the cut in the milk price, it is expected to have an. For Brodie Game, the opening price comes eight weeks after moving with her husband Kevin onto a new lease at Bemboka in southern NSW. 'The global market indicated for a long time that there was going to be a drop, and there was no way any company could withstand that sort of market drop and hold their prices high.

'When the 11 per cent drop came through, we had been budgeting on it. We weren't impressed by it, I mean you can you can deal with it — it's not horrific, but it's not amazing. 'But we will get through it. We had similar prices to this when we first started dairying and we did it then, so we just have to make our way through it.' Paul Mumford: Murray Goulburn. Murray Goulburn milk prices Year Open price Final price 2016-17 $4.31* 2015-16 $5.60 $4.80^ 2014-15 $6.00 $6.05 2013-14 $5.60 $6.81 Price is per kilogram of milk solids for southern suppliers *Price after repayment deductions from April's price cuts ^Price prior to support package, which when applied, brings the price to $5.53 kg/ms MG further, offering farmers $4.45kg/ms.

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