Colac dairy processor Bulla Foods has announced a ten cents/kilogram milk solids step up, to be paid retrospectively.
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The company said its latest business forecasts and strong sales results, leading up to Christmas, means Band One suppliers will now receive $6.80 kg/MS.
The payment will be backdated to July 1, this year.
"This year has been a challenging year for everyone, however, we wanted to end it with some positive news for our farmers leading into Christmas," Bulla chief executive Allan Hood.
"We are forecasting our biggest Christmas and summer period ever.
"This is driven primarily by the ongoing loyalty Australian consumers have shown for Bulla's locally made dairy products.
"In particular, we have seen strong demand for our Bulla Cream as more consumers seek inspiration for at-home cooking.
"That's coupled with our ice cream range that continues to grow driven by the successful launch of our new Super Premium Range, Murray Street."
Mr Hood said the increase allowed farmers to plan for the next couple of months securely.
It further demonstrated the company's appreciation for farmers' ongoing supply, support and efforts to deliver high-quality milk consistently.
He said Bulla maintained a transparent and straightforward pricing approach.
"There is no stop charge, volume charge or collection charge, so farmers receive 100 per cent of the price," Mr Hood said.
The company also applies a flat payment model to improve farmers' cash flow throughout the season.
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