11 Apr 2018

Milk Price Update - April 2018

Burra Foods has confirmed a Burra Supply Incentive (BSI) payment for the FY18 season.

We confirm that a BSI payment of 6.5c/kg Fat and 14.3c/kg Protein (equivalent to 10c/kgMS) will be paid on all milk solids received for the FY18 season. The BSI payment for FY18 will be made on 15 August 2018.

There have been a number of dairy related announcements in recent weeks which has changed the landscape for the upcoming season. Saputo has now been approved to purchase Murray Goulburn assets and liabilities following a binding undertaking to the ACCC to dispose of the Koroit manufacturing facility. The disposal process is likely to commence by the end of April and we expect there to be a number of suitors, including ourselves.

As we head into our May shutdown, Burra is maintaining its focus on our core business. We continue to experience strong demand for nutritional and fat products and are confident this product mix will ensure we continue paying a market competitive milk price to our Milk Supply Partners into the future.

We look forward to seeing our Milk Supply Partners when visiting the Burra tent at Farm World, Lardner Park, later this week.

Kind Regards,

Grant Crothers

Chief Executive/Managing Director