BURRA Foods has come out with a competitive opening price of $8.50 to $9.00/kg milk solids, as its “Minimum Farmgate Milk Price Range" for FY24: July 1, 2023 to June 30, 2024.
But in a point of difference that local communities will appreciate, Burra Foods will put around $250 million back into local communities “through milk price, wages and employment, preferential engagement of local contractors and transport providers, and donations to various clubs and organisations”.
It's a distinction that Burra Foods hopes will make all the difference when local suppliers are weighing up their supply decisions this year.
In a letter to suppliers, CEO Stewart Carson has been, up front, however about the price being down on last year’s milk returns.
“As per our long-term practice, we are quoting a range in which more than 90% of our milk supply partners will sit, rather than a weighted average price which is often difficult for many to achieve,” said Stewart Carson Chief Executive Officer.
“We acknowledge that this minimum price is a reduction on current year. Whilst we are disappointed this is the case; we have considered the decreased value in global markets over the last 12 months and the growing un-competitiveness of Australian exports versus other countries.
“Australia is the only country in the world that must set a minimum milk price for the next 13 months, yet trade in volatile markets.
“With the recently communicated restructure, Burra Foods is continuing to focus on improving productivity, reducing costs and optimising our product mix with an increasing domestic focus to maximise returns.
“Our successful launch into cream cheese this year has been further endorsed by the board supporting a capacity upgrade to the facility as we continue to focus on new premium markets and products.
“We are very proud of our contribution to Gippsland and are heavily invested in our local dairying communities.
“In this financial year, we will provide around $250 million back into our communities through milk price, wages and employment, preferential engagement of local contractors and transport providers, and donations to various clubs and organisations.
“We don't often publicise these initiatives, but we do enjoy knowing that we are directly supporting the region in which we exist and ultimately you, our milk supply partners.
“Today is World Milk Day. For over 30 years, Burra Foods has been partnering to bring the best of Australian dairy to the world and we want to continue this for years to come. Our Milk Supply Partnerships are the foundation of our business, and we thank you for your supply.”
In a letter to Burra Foods suppliers, Mr Carson wished them “all the best for the season ahead”.