NEW milk prices released on July 1 have further bolstered confidence levels among local dairy farmers.
Prices have remained steady across the region at $9.20kgMS with a slight variance amongst farmers which is consistent to last year’s prices.
Dairy Australia industry analyst Eliza Redfern said a number of factors influenced the prices passed on to local farmers.
“A smaller milk pool has spurred competition amongst processors to secure milk, driving above average farmgate milk prices relatively on par with last season’s prices despite falling global dairy export prices, which are taken into account for milk prices offered to farmers in the more southern export focused states,” Ms Redfern said.
“Because of a tighter milk pool, competition becomes secure among farmers who can shop around and choose the best processor offering the best rate.
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“Every farmer will choose their own processor that meets the farmer's needs based on the number of cows, milk produced and rates paid.
“The current milk prices remain stable across the state and more so in North East Victoria.”
Oxley Flats dairy farmer Trevor Hourigan, who runs a herd of 300 cows on 400 acres with his daughter Aime Hourigan, said the prices are good news.
“The latest announcement is welcoming news to our farm as it gives us confidence moving forward into next year,” Mr Hourigan said.
“I am very happy with the new prices with other farmers sitting at a consistent rate around $9.20kgMS.
“We supply our milk to Bega who offer a competitive rate and will continue to contract with them as a supplier.
“The current milk pool is small locally which creates a competitive market and will continue a high demand for milk on our farm and other farmers nearby.
“The milk pool is tipped to reduce because farmers cannot get staff or choose to retire without family members choosing to take over their business.
“So a small milk pool means better competition for us...the future over the next 12 months is looking very promising.
“Overall the dairy industry local to Wangaratta remains positive along with the future of our business.”
