Bega Cheese has announced its opening price for the 2018/19 financial year is $5.85 a kilogram milk solids.
The price represents a whole of financial year volume-weighted average price for Bega’s forecast Victorian supply, before the deduction of industry levies.
In a letter to suppliers, executive chairman Barry Irvin said the opening price, and in addition to the Bega Supply Premium announced in April this year, is a competitive milk price.
It compares to recent price announcements made by Saputo, at $5.75/kgms, and Burra’s fixed milk price of $6/kgms.
Bega’s supply premium equates to 25c/kg MS for two-year premiums and 50c/kg MS for three-year premiums, which brings up opening prices for premium suppliers to $5.97/kg MS (two-year) and $6.01/kg MS (three-year).
The company also announced that for the 2017/18 financial year, it is paying a final loyalty payment of 7c/kg MS (5c/kg MS of butterfat and 10c/kg MS for protein), bringing its weighted price average to $5.70/kg MS.
The loyalty payment will be paid to those who have supplied Tatura Milk from July 1, 2017 to June 30, 2018, and will be paid on July 15, 2018.