DAIRY industry newcomer Australian Consolidated Milk has snapped up "not quite 10 million litres" from United Dairy Power during the past month, as farmers seek more money for spring milk.
Up to four suppliers from southern NSW and northern Victoria, who were receiving as little as 21c/litre recently, have moved to supply Kyabram's ACM to boost their spring cash-flow.
However, UDP managing director Tony Esposito said he had lost only five million litres to ACM as suppliers were told they would be paid more for milk next spring.
Mr Esposito denied UDP was 10c/litre lower than any other companies in spring.
He said farmers who moved across would lose money.
"January to the end of June, they would lose the best part of 3c/litre," Mr Esposito said.
"We anticipate increasing again in the next six months ... move another 2c/litre."
Mr Esposito said the milk had already been replaced by suppliers from the west and east of the state.
Suppliers told The Weekly Times ACM was paying up to 10c/litre more for spring milk with farmers pocketing 31c/litre during that time, for a season average of about 38c/litre.
The farmers said the move did not reflect on UDP's treatment of suppliers. However, they said their decision was to boost cash-flow during an expensive time.
One supplier said "it's about going where your business sits best financially."
"Someone with a flat supply was not getting enough cash in the first half of the year to justify a flat supply all year around."
Other suppliers said pricing structures was something the entire industry needed to look at to prevent cash-flow peaks and troughs from 22c/litre in the spring up to 48c/litre in the winter.
ACM milk supply manager John Hommes said "not quite 10 million litres" had come across from UDP and the new milk was destined for its Sydney market.
Meanwhile, Tatura Milk Industries and Bega Cheese have further increased prices for milk supplied in the second half of the season.
Suppliers will receive about 5c/litre more for milk supplied from January to June next year.
Bega's 65 southern suppliers received an increase of 0.49c/kg butterfat and 0.782c/kg protein.
