MURRAY Goulburn has increased its farmgate milk price.
The dairy giant informed its suppliers this morning that its average weighted season price was $5.35 a kilogram of milk solids after a rise of 8c/kg butterfat and 20c/kg protein.
This step-up will be back-paid to the beginning of the season and available in next month's milk cheque.
In the supplier letter MG managing director Gary Helou said the step-up exceeded the end of the year forecast of $5.30kg/MS.
"The price increase has been achieved through cost reductions and operational efficiencies, which have improved our margins despite a softening in world market prices and unfavourable foreign exchange conditions,'' he wrote.
MG said this step-up was structured as a loyalty bonus and would only be paid to those who are Murray Goulburn supplier/shareholders on the day the bonus payments are made next month.