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Higher payments for Burra suppliers

Gippsland-based Burra Foods has announced its latest step-up payment, and urged farmers to make the most of the global dairy price surge.

By Grant Crothers - 15th May 2007 - Back to News

Higher payments for Burra suppliers

Gippsland-based Burra Foods has announced its latest step-up payment, and urged farmers to make the most of the global dairy price surge.

Burra’s step-up of 7c/kg butterfat and 17c/kg protein is backdated to July 1, 2006 and will be paid with this week’s remittance.

It means that, this financial year, the ‘average’ Burra Foods supplier’s cash income will be at least $31,000 higher than that of their neighbours.

Burra chief executive Grant Crothers said: "We continue to pay a premium above the major manufacturers. In a season of exceptionally high production costs, we see this commitment to a fair farmgate price as more significant than ever."

The specialist dairy ingredients manufacturer is optimistic about the future "despite the harsh conditions that farmers are living with … on a daily basis," Mr Crothers said.

Exporting premium products to international and Australian food manufacturers will see the Korumburra-based family business attract high global dairy prices, he added.

"If farmers can maintain or increase cost-efficient milk production – and with our higher-than-average farmgate price – they can expect to capture the gains of this trend," he said. "It’s a trend we believe will not reverse."

Mr Crothers warned that the only dampener was an even stronger A$. "However, we remain buoyant about opportunities available for the Australian industry and our ability to continue to capture value," he said.

Source: http://gippsland.com/

Published by: susanw@ptarmigan.com.au

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