The Murray Goulburn Co-op farmgate price for the opening of the milking season in its southern milk region is AU$4.70/kg of milk solids (MS), which is equivalent to a price of 24c/l in euro terms at base fat and protein rates. This includes the Australian processor’s reward programme and other incentive payments.

“We also forecast a 2017/18 full-year Southern Milk Region farmgate milk price in the range of $5.20/kg MS (26.6c/l) to $5.40/kg MS (27.6c/l),” a statement from the co-op reads. “This range is subject to various assumptions, including dairy commodity prices, exchange rates, and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5bn litres.”

Strategic review

“While these prices are an improvement on 2016/17 farmgate milk price, MG’s performance remains below expectations,” the co-op said. “In order to address the performance gap, the commencement of a comprehensive strategic review has been announced which will look at all aspects of MG’s strategy and corporate structure, including the profit-sharing mechanism and capital structure.”

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Australian co-op's milk price forecast improves but remains 'below expectation'

Murray Goulburn Co-op, Australia's largest dairy processor, is expecting the coming year's farmgate milk price to be around 27c/l including farmer supports.