09 June 2017
2017/18 Opening milk price
WCB is pleased to announce an opening average milk price for the 2017/18 season of $5.50 per kilogram milk solids.
As usual we have taken a cautious approach in this process to ensure that our opening price reflects the current market outlook and our best assessment of market conditions for the coming year. Considering industry events in recent years, it is important that we have confidence that our opening price is deliverable in circumstances where market conditions deteriorate, but also with room to move upwards if and when trading conditions become more certain.
Global dairy commodity prices have shown some recovery from the low levels we were experiencing this time last year. Recently prices have remained relatively more stable, however powder prices are still at historically low levels. The signals around the supply outlook are mixed with some signs that milk production in key dairy regions including the European Union and New Zealand may be better than previously expected. World inventory levels remain high, and with these factors in the market, it remains difficult to predict market conditions going forward.
Our commitment to pay leading competitive milk prices continues with this current year being the fourth year in succession that we have returned more to our suppliers than our major competitors.
During the past year, we have welcomed many new suppliers to our business. This has allowed us to expand our cheese capacity by 30% and enhance manufacturing volumes of other dairy products. This upgrade is now complete, and, with the increase in milk volume, provides additional scale to our operation. We will seek new milk supply again for our business next season.