29 June 2007

1 minute read

Oceania

The latest milk processor to join the bidding war is Fonterra which has lifted its opening price by a record 40 per cent.

The move follows a 35 per cent jump from Murray Goulburn and 30 per cent for Bega Milk.

Victorian-based processor Warrnambool Cheese and Butter has also joined the price frenzy with an opening price 33 per cent higher than last year.

Australian Dairy Farmers' Robert Poole says competition between milk processors is good news for farmers.

"The strong competition for milk is increasing ... but it has been something we have become accustomed to over the last couple of years," he said.

"Obviously the companies want to send really strong signals to the farmers about the potential for profitability because just about every farmer has reviewed their situation and has reviewed their long term future in the industry."

Analysts say tens of millions of dollars will flow into dairy regions because of the new season prices.

In Tasmania, Fonterra's 40 per cent price hike is expected to be a huge boost.

Source: ABC Online