Burra offers incentive for fat

13 Jun, 2018 03:17 PM
Comments
0
 
Jersey Australia president Chris MacKenzie, Timboon, commended Burra Foods on its move, saying other processors would be watching it very closely. The organisation had been calling for greater incentives for milk fat, for some time.
I think the other processors will certainly watch it with interest.
Jersey Australia president Chris MacKenzie, Timboon, commended Burra Foods on its move, saying other processors would be watching it very closely. The organisation had been calling for greater incentives for milk fat, for some time.

The head of Jersey Australia has welcomed what he says is a bold initiative by Gippsland processor Burra Foods to give greater recognition to the fat content of milk it receives.

Burra chief executive Grant Crothers announced last week that the company was offering all farmers the opportunity to be paid on a 1:1 fat-to-protein ratio.

Jersey Australia president Chris MacKenzie, Timboon, complimented Burra on its decision.

“That was a major thing we were looking at, because of the way world prices have been for some time,” Mr MacKenzie said.

“I think the other processors will certainly watch it with interest.

“It’s a bold stance [Mr Crothers] has taken.”

Mr Crothers said it was a very important initiative that reflected the market value of milk components.

“We expect those milking Jersey or crossbred herds to be able to grasp the opportunity with both hands, but we also are signalling to others to start feeding for fat,” Mr Crothers said.

The announcement came with details of Burra Foods’ opening milk price range for the coming season of $5.60-$5.90 a kilogram milk solids, an eight per cent increase over last year’s opening price.

Paul Mumford, Wron Wron, Gippsland, who has a Jersey herd of 600 cattle, over two properties, said the move would be welcomed.

“It’s giving farmers a clear indication on where to breed and it allows them to take advantage of a good milk price structure, coming into the next season,” Mr Mumford said.

“It’s a very competitive milk market at the moment and I think all processors are coming up with strategies to secure their supply and potentially look for new milk.”

Earlier this year, Jersey Australia board member Jane Sykes said current pricing systems didn’t necessarily represent the true market value of milk components.

“We want price parity between butterfat and protein,” Ms Sykes said.

Mr Crothers said the decision reflected the strong returns for fat products.

The company wished to both reward and offer incentives to farmers.

Suppliers would have the option of selecting either a 1:2 fat-to-protein ratio or 1:1 fat-to-protein ratio at the start of the season.

Mr Crothers acknowledged altering components was not quick, or simple.

“We recognised many supply partners have geared themselves towards protein production, which is why we are providing the option,” he said.

StockLand
Andrew Miller

Andrew Miller

is a journalist for Stock and Land
Twitter: @journoandy26

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
A new definition of 'genetically modified' currently awaiting parliamentary approval could see a swathe of new grasses on the market within three years.
13 Nov 18 A new definition of "genetically modified" currently awaiting parliamentary approval could see a swathe of new...
A person normally breathes about 25,000 times a day, with the lungs taking in oxygen from the air and delivering it to the bloodstream.02 Nov 18 A person normally breathes about 25,000 times a day, with the lungs taking in oxygen from the air and delivering it...
light grey arrow
Don't fall for the processors changing their contracts. They can change them back again without
light grey arrow
This is all very nice for specific LIon suppliers but it does absolutely nothig for the wider
light grey arrow
This is well-written, covers what's going on well. It highlights how wrong the processors
Australian Dairyfarmer's Jeanette Severs checked out the range of new and interesting products and services on show at the South Gippsland Dairy Expo in September, while Peter Roach caught up with suppliers at the Elmore Field Days in October.02 Dec 18 Australian Dairyfarmer's Jeanette Severs checked out the range of new and interesting products and services on show...
The floodplain around Kerang and Swan Hill in north-west Victoria is dotted with depressions and surrounding windblown lunettes.29 Nov 18 The floodplain around Kerang and Swan Hill in north-west Victoria is dotted with depressions and surrounding...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.