National Dairy Products and Burra Foods informed farmers of their decision on Friday afternoon. 

National Dairy Products will open the farmgate price at $5 per kilogram of milk solid (MS), while competitor Burra announced an opening price of $4.40-$4.60/kg MS.

National Dairy products national director Tony Esposito said they would work with customers and follow market conditions.

“We will ensure that we are maximising the margins that are able to be passed on to our supplier base,” he said.

Mr Esposito thanked suppliers for their support throughout the tough times that faced the dairy industry.

“We endeavour to help support your businesses back to more positive times,” he said. 

Burra Foods said despite the lower price, they intended to deliver step-ups across the 2016/17 season.

Burra managing director Grant Crothers said their forecasts were in line with the lower-than-expected returns of last season. 

“We will now work with our supply partners to ensure they have accurate cash-flow forecasts to empower them to make the best possible ‘on-farm’ management decisions required,” he said. 

A large percentage of south-west suppliers still await the opening milk price of Murray Goulburn and Fonterra.