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Milk Price Review - March 2017

05 April 2017

31 March 2017

Dear Supplier

2016/17 milk price review

We are pleased to announce a further step up in milk price for the 2016-17 season of: -

Butterfat    8 cents per kilogram

Protein      20 cents per kilogram

This payment is retrospective and applies to milk supplied from 1 July 2016.  The payment will be made with March 2017 proceeds during April 2017 and increases our average milk price for the 2016/17 season to $5.25 per kilogram milk solids.

As outlined in our last review, dairy commodity prices recovered in the first half of the season from the low levels we had been experiencing.  However, in recent weeks there has been sharp decline in dairy commodity prices in particular in milk powders.  This highlights the continuing uncertainties in the global market.

World inventory levels remain high and there are some signs now that milk production in key dairy regions including the European Union and New Zealand, may be better than previously expected.  These factors have led to the recent weakening of prices, and, in this environment it remains difficult to predict the global dairy market conditions going forward.  We remain positive about the outlook for next season but are cautious given the continuing uncertainties.

Supplier Meetings

Informal supplier meetings will recommence in April; in Mount Gambier on April 4 and in Colac on May 9.  Our annual supplier roadshow will be held again during July.  Further details will be communicated to you in due course.

As always, I thank you for your ongoing support and please feel free to contact the field services team if you have any queries or if we can assist you further in any way.

Yours sincerely
Richard Wallace
Senior Vice President and General Manager