WARRNAMBOOL Cheese and Butter yesterday announced an increase in its milk price.
Suppliers will receive an extra 16 cents per kilogram butterfat and 40 cents per kilogram protein, retrospective to July 1.
The increase follows the company’s scheduled October review and takes the weighted average milk price to $6.05 per kilogram milk solids.
The company has also revised its full year price forecast to a range of $6.15 to $6.30 per kilogram milk solids.
In a letter the shareholders, chief executive David Lord said continued stability in world dairy prices was providing further confidence in the outlook for the season.
“Given the variability of the many external factors such as milk supply growth, market demand, world dairy prices and exchange rates, the longer term outlook is more difficult to predict,” Mr Lord said.
The next price review will be in January.