Longwarry Food Park has announced its sixth step-up of the 2013-14 season as it pushes to increase milk supply to meet demand from export markets.
The year-to-date farm gate increases are: butterfat up nine cents per kg to 72 cents and protein up 19 cents to 152c/kg, plus a prepaid June 2014 step-up of 10c/kg butterfat and 20c/kg protein.
The step-up price increase is effective from May 1, 2014 and will be paid retrospectively on premium and base quality milk supplied from July 1, 2013 until April 30, 2014.
It will be paid with the May milk payment due on June 15, 2014 to all farmers who are supplying Longwarry Food Park on the payment date.
Managing director Rakesh Aggarwal said the latest step-up was in line with the company’s commitment to offer the best possible payment to its suppliers.
“We want to reward our suppliers with the highest price the market allows and we want to attract new farmers to a vibrant and forward thinking milk company,” he said.
“Longwarry Food Park has a reputation for rewarding its suppliers and we will continue to do so as we push even further into the growing markets of Asia and the Middle East that are so crucial to the future of the Gippsland dairy industry.
“We will be increasing the premium over our competition even further in the new season with a more pragmatic and less punitive approach to quality.”
Mr Aggarwal said international commodity markets were currently not as strong as they could be, but he was confident that the longer term situation remain strong.
“There has been some softening in the commodity markets over the last few months, which we believe is due to overstocking of products in China,” he said.
“The structural drivers are still present and we believe that the conditions will change by August 14.”
Longwarry Food Park, which produces the Gippy milk range, is confident of a strong 2014-15 season.
“Our business is poised for significant growth after an exceptional 2013-14 year,” Mr Aggarwal said.
“Milk powders, Cream Cheese, Bulk ESL Milk and UHT are great export products for us.
“We remain well positioned to significantly increase our milk supply over the coming season and would love to hear from any farmers who are considering their options on who they supply to.”