The announcement was made to farmers on Tuesday, June 21 and follows the opening prices of Warrnambool Cheese and Butter at $4.80/kg and Australian Consolidated Milk at $5.30/kg.

United Dairfarmers of Victoria president Adam Jenkins said despite a reduction on last season, it was a positive start.

“It’s better than was estimated,” he said. 

“Five dollars is much better than four.”

Mr Jenkins said the final opening prices could be expected within a day.

“It’s cat and mouse week,” he said. “Others will have to pitch their prices very soon.”

Bega maintained its opening price of $5.60/kg throughout last season, despite cuts made by industry leaders Murray Goulburn and Fonterra.

Bega executive chairman Barry Irvin said lower global market prices were the reason for the price fall.

Mr Irvin said the Farmgate milk prices were driven by returns received from markets domestic and international markets. 

“These are difficult times in terms of farm gate milk prices,” he said. 

“We believe our opening 2016/17 prices… reflect the market and are responsible”. 

Mr Irvin said Bega's long-term strategy hoped to build the business and enhance the value of its products and future opening prices.