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Burra Foods lifts milk payments 34%

Specialist Gippsland dairy company Burra Foods will pay its suppliers 34% more than last year’s opening milk price, making it one of the industry’s highest-payers.

By Grant Crothers - 30th June 2007 - Back to News

Specialist Gippsland dairy company Burra Foods will pay its suppliers 34% more than last year’s opening milk price, making it one of the industry’s highest-payers.

The company announced opening prices on Friday.

Burra Foods is offering farmers from Foster to Lang Lang more money from July 1, 2007 – with the promise of further step-ups in the next 12 months.

For seasonal suppliers the base price will be 3.06c/kg butterfat and 7.58 c/kg protein.

Incentive payments will see the dairy components manufacturer offering up to 52c/kg protein and 21c/kg butterfat for winter milk.

There will also be additional payments for volume while farmers who have improved tanker access to their farms will also be rewarded.

Burra Foods’ chief executive Grant Crothers said the family-owned company was celebrating the buoyant market for its high-end dairy ingredients.

"In the 2006/07 financial year, the ‘average’ Burra Foods supplier’s cash income was at least $31,000 higher than that of their neighbour," he said. "We are anticipating these opening prices will again put our suppliers ahead of the industry average.

"There has been unprecedented world demand for dairy products and significant increases in their value.

"Burra Foods creates the premium ingredients used to make innovative dairy products that are exported worldwide. Our exposure to these global customers means Burra Foods will benefit from market demand more than many dairy foods companies.

"With our suppliers, we look forward to a productive year in a buoyant market."

For details about supplier payments, contact Reno on 5658 0017 or 0409 552 174.


Source: http://gippsland.com/

Published by: susanw@ptarmigan.com.au



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