Posted Monday 28 March 2022

21 March 2022

Burra Foods has announced an increase in Farmgate Milk Price (FMP) of $0.20/kg Milk Solids for the full season period from July 1, 2021 – June 30, 2022.

A global imbalance in the supply and demand of dairy products has driven commodity prices higher in recent months, said Burra Foods chief executive officer, Stewart Carson.

“Decreased milk production in Europe and New Zealand in the second half of 2021 coupled with strong global demand has increased commodity prices over recent months,” Mr Carson said.

“Burra has continued to be laser focused on maximising value from milk solids and taking advantage of the current global situation. Our teams continue to deliver productivity and quality improvements, which has allowed us to be flexible and agile with product mix. This remains one of the core strengths of our business.

“We expect that continued disruptions in supply chains and the conflict in Ukraine will have a material impact on global dairy markets. Fuel, fertiliser and grain prices are already trending upwards. We expect this will likely place significant pressure on milk production growth internationally, increasing competition for milk and growing food inflation rates.”

Burra Foods remains positive and optimistic about the upcoming season. “The resilience of our milk supply partners and team members in the last couple of years has been tremendous. We have demonstrated that we can continue to navigate through a pandemic and take advantage of a commodity cycle boom whilst supporting the long-term customers with core products that have been the backbone of our business,” said Mr Carson.