Murray Goulburn lifts its milk payment

AS cries by dairy farmers for government assistance continue to snowball, producer Murray Goulburn has announced its third price step-up this season and offered financial assistance.

The co-operative, which is Australia’s largest dairy food company, acknowledged tough times were likely to continue for the remainder of this financial year.

Managing director Gary Helou said efforts would continue for further farmer price rises, despite lower international dairy prices, a high Australian dollar, difficult dairying seasonal conditions and high feed costs. 

He attributed the ability to pay the latest step-up to the $100 million cost-cutting and redundancies last year at Koroit and other factories.

Mr Helou said farmers with cash flow problems would be given the option of suspending their share equity take-off until June 30 and suppliers could discuss possible financial support to reduce cash flow pressures until conditions improve.

The latest step-up is an extra 20c/kg for protein and 8c/kg for butterfar for milk supplied in the 2012-13 season.

pcollins@fairfaxmedia.com.au

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