DAIRY farmers will receive a boost in their milk cheques next month with several companies announcing step-ups and more expected to increase milk prices.
The largest milk processor, Murray Goulburn, announced an increase of about 1.5c/litre last week, pushing the season average price to 28.5c/litre.
Tatura Milk Industries stepped-up 16c/litre butterfat and 40c/litre protein, or 2c/litre, to average 30-31c/litre.
Burra Foods also increased milk prices by the same rate as MG - 12c/litre butterfat and 30c/litre protein - maintaining a season average of up to 2c/litre above the cooperative.
Other companies are yet to follow, citing the high Australian dollar and a reluctance to "finance" milk prices as reasons to hold the price.
Fonterra, which announced an increase in September of 8c/litre butterfat and 20c/litre protein, will continue to monitor the market.
National Milk Services manager Heather Stacy said the price outlook was now more positive, but the strong Australian dollar was a challenge.
Warrnambool Cheese and Butter has yet to increase its opening milk price from 28c/litre, however, confidence has been building with hopes the company could improve on last year's milk intake of 922 million litres.
WCB managing director John McLean said a step-up would be "in the not-too-distant future".
"We will be reviewing the price after we have October's results, then we will go from there," Mr McLean said.
MG opened with the lowest milk price and despite two step-ups, farmers will only receive between 19-25c/litre for spring milk.
Chairman Ian MacAulay said the recent step-up puts MG "up or ahead of the pack" with a competitive price and denied the second increase was to stop farmers leaving to chase better returns.
MG also informed suppliers it would advise them next month of the increased price it will pay for milk supplied from January to June.
TMI chairman Barry Irvin defended the decision to wait to announce the first step-up.
"It was more value to (suppliers) a little later and a little more substantial," he said.
Meanwhile, West Australia's Challenge Dairy suppliers will receive 3c/litre less for November and December milk.
