BURRA Foods suppliers will receive $4.75 a kilogram of milk solids at the start of next season.
The Korumburra-based company told its 80 suppliers of the price on Monday, making it the second Victorian processor to reveal its new-season price.
Late last month, Fonterra announced a $4.36kg/MS price for the season beginning July 1.
Burra Foods chief executive officer Grant Crothers said the opening price - which equates to 35-36c/litre - was 30 per cent higher than last year and the company was putting its "best foot forward."
"We always try to pay suppliers more. We recognise the milk price for the last 12 months was unsustainable for farmers and the industry in general," Mr Crothers said.
"It's time dairy farmers get some cash and we are doing our best to do that."
Burra Foods has aspirations to grow its supply base to 190 suppliers in the next 12 months.
Other processors are expected to announce prices for next season before the end of the month.
Fonterra does not plan to alter the price announced last month. Rather, spokesman James Molan said it would review prices in a "structured and considered" way during the season.
"Farmers understand the opening price figure is pretty meaningless," Mr Molan said.
"What matters is how the monthly rates and incentives apply to each individual's farm milk profile.
"Our opening price was set in May and was based on what we saw in the market at the time.
"Obviously things change, especially in the current volatile environment.
"For example, the Aussie dollar has fallen about (US)10 cents since we were doing our budgets."
Meanwhile, dairy farmers have been left wondering where the last of this season's budgeted milk price increases are.
Some Murray Goulburn suppliers who spoke to The Weekly Times were confident an announcement would be made about a retrospective farm gate milk price step-up at the end of this month.
However, they believe it won't be paid until a few months into next season.
MG chairman Grant Davies said the co-operative would review its finances "at the next board meeting" scheduled for later this month.
Similarly, Longwarry Food Park suppliers should receive a milk price increase to round out the season.
Longwarry milk supply and domestic sales manager Shane Murphy indicated to suppliers that there would be another step-up for this season and he expected this to be paid restrospectively in July or August.
