Burra Foods Announces Quoting Range
The South Gippsland processor announced this morning its opening price would be between $5.25-$5.65 a kilogram of milk solids.
The range was due to each farm having a different seasonal supply curve, production profile and composition, according to Burra Foods chief executive officer Grant Crothers.
He also raised concern about misinformation in opening prices that have been announced by some of the major processors in recent weeks.
"It seems that some processors are in the habit of announcing an opening price that is theoretically "avaliable": but which no supplier in the pool can achieve as it's so far way from the typical supplier,'' Mr Crothers said.
When the actual prices as announced are applied to an average sized Gippsland farm, it can be up to $0.40kg/MS less, a difference that is far too significant, he said.