News

Farm gate milk price closer to alignment

By Geoff Adams

Nov 22, 2024

Bega Cheese’s farm gate milk price was now closer in alignment to the commodity prices that the company could achieve, the company’s annual general meeting heard recently.

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Chair Barry Irvin pointed to what he called the significant gap between the two figures, but he also noted that the two were coming into closer alignment.

“It is very straight forward to observe the significant gap that we had to deal with during financial year 2023 and financial year 2024,” Mr Irvin told the meeting.

“There has been a reduction in that gap in financial year 2025, which is more reflective of the long-term position for the industry.

“It is not so much what the milk price is, in fact we would love to pay a higher price for milk, with the limiting factor being the returns we receive in the market.

“Paying a significant price over the market for an extended period of time always ends badly and we have seen that time and time again in the Australian dairy industry.

“A greater alignment in farm gate price to market ensures companies are able to invest to improve efficiencies and improve returns.”

Bega Group reported $164 million in earnings before interest, taxes and depreciation.