A new milk price index should be up and running early next year.
The Federal Government yesterday announced building was now underway of the commodity milk price index, which will aim to give dairy farmers greater transparency of milk prices and better market signals.
The index was promised 18 months ago, as part of the Government’s $579 million dairy support package following milk price cuts by Murray Goulburn and Fonterra that plunged dairy farmers into crisis.
About $1 million was set aside for the index. Webber Quantitative Consulting — a company that appears to have extensive experience in the aviation industry — won the tender.
The index and other associated resources will be available early next year and will be updated monthly.
Assistant Agriculture Minister Anne Ruston said the index would help farmers incorporate price information into their business decisions.
“This Government knows it is vitally important that Australian dairy farmers are able to understand and interpret price signals from the global dairy market to help drive decisions on farm,” Senator Ruston said.
“The index will help to avoid a situation such as the retrospective price cuts imposed on dairy farmers by Murray Goulburn, Fonterra and National Dairy Products late in the 2016 season.”
Senator Ruston said advice from an industry advisory panel — including representatives from Australian Dairy Farmer’s Markets, the Trade and Value Chain Advisory Group and the Australian Dairy Products Federation — assisted those assessing bids for the project.
Source: The Weekly Times