Brownes up ante on milk price

27 Apr, 2013 02:00 AM
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DAIRY farmers are revelling after one of WA's biggest milk processors announced an increase in farmgate prices.

Brownes Dairy is set to up its spring prices significantly.

Brownes suppliers can expect an extra four cents a litre in September and October, an extra 2c/L in November and an extra 3c/L in December.

Brownes strategic project manager Laurie Cramsberg said this meant an additional 2c/L across the 12 months of the year.

"We are all about offering a sustainable price to our farmers," he said.

The price increases were announced at farmer meetings in the South West early this week.

It was a relief for many dairy farmers who have struggled with high input costs alongside the supermarket price wars which were said to be devaluing the industry.

It follows the price increase announced last October of 2c/L to Brownes suppliers from January to April this year and was the third farmgate increase from Brownes in 12 months.

Brownes Dairy managing director Ben Purcell said he was committed to sustainability in the WA dairy industry.

"We announced 2c/L last year, which ended up being 2.7c/L, so we over-delivered on that promise," he said.

"And hopefully we can over-deliver on this one.

"We are determined to get economic justice for our farmers.

"Brownes is leading the industry in the price we give our farmers."

Mr Purcell said the company would be passing on the farmgate price increase to the retail market.

Scott River dairy farmer Ross Woodhouse said it was great news and the increase in spring prices in particularly was very welcome.

"Spring is a time we have lots of grass and low inputs so it is a great opportunity to make some profit," he said.

"All price increases from Brownes have been welcomed but unfortunately they can be rapidly negated as input costs continue to increase."

Former dairy farmer Dean Maughan, who had recently compiled a number of reports on the lack of sustainability in the dairy industry, also welcomed the news.

"With the retail market Brownes operates in, I know it is doing the best it can," he said.

"Any increase is great news for dairy farmers."

FarmWeekly
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READER COMMENTS

Synical
27/04/2013 7:41:07 AM, on Farm Weekly

I can almost hear the meetings of the big conglomerate farm suppliers working out ways to justify lifting the price of inputs. i.e. fertilisers, drenches etc etc.
Cattle Advocate
30/04/2013 6:11:39 AM, on Farm Weekly

If fresh milk was treated as a currency and a business asked a Milk Bank for a loan so it could resell the milk at a loss for 3 years while damaging the businesses of the Milk Bank's other customers, would the loan be approved?

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