Pay rise delights farmers

Optimistic outlook: Leongatha South dairy farmer, Gordon Vagg.
Posted by SiteAdmin in Rural on 07 Jul 2010 at 09:10 am

By Brad Lester
THE dairy industry is continuing to recover from a trying period, after co-operative Murray Goulburn announced an opening price 30 per cent up on last year’s figure.
MG announced an average of $4.75kg of milk solids, ahead of rival Fonterra’s $4.36kg and Bega Cheese’s $4.70kg, or 35 cents a litre.
But while MG’s price is well above last year’s, it is down on the opening price for the 2008-09 season.
The long term forecast remains optimistic, with MG managing director Stephen O’Rourke informing suppliers the current market forecast shows a final milk price for the season of $5.30-$5.50kg.
“If the market conditions allow us to meet this forecast we are committed to delivering this return via step-ups in milk price throughout the coming year,” he said.
Leongatha South dairy farmer Gordon Vagg said a higher opening price was welcome but he believed the market was far from fully recovered.
“It’s still not going to be marvellous. It won’t be as much as what it was a few years ago,” he said.
“Things like fertiliser and fuel are still going up. But the international market is still going in the right direction and becoming more stable, so things are looking up.”
Had MG not announced a better price, many farmers would have experienced more financial hardship, Mr V...
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