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The Bega Group has announced an opening farmgate milk price in line with the other major processors. It announced an indicative opening milk price range of $7.90-$8.

20 a kilogram milk solids for season 2024-25 for southern suppliers on June 3. It represents a 11-15 per cent drop on last year's price. of $8-$8.



15/kg MS for season 2024-25 - a 12-14pc drop on last year's price. Fonterra was the first processor to announce an opening price - with a price of South Australian processor Beston announced an average weighted opening price $7.80-$8.

10/kg MS, a 13-16pc fall. The company has struggled in recent months, delaying 15 per cent of milk payments to dairy farmers in April and May. Chief executive officer Fabrizio Jorge in a letter to suppliers said Beston had had to overcome "very challenging conditions as SA's largest dairy processor".

"The so-called disconnect of the Australian milk price versus key export markets like New Zealand have been on average $2/kg MS throughout the FY24 season," he said. "The impact of this differential has been felt across our entire organisation, alongside inflationary pressure on energy, labour, chemicals, freight etc. "The Australian dairy industry has never seen such a level of pricing differentials with New Zealand milk prices and the consequences of such disparity has resulted in record imports of dairy into Australia, as well as poor competitive levels across key export markets.

" Carlene Dowie is the editor of the Australian Dairyfarmer maga.

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