Scores of northern Victorian dairy farmers could lose up to $500,000 this financial year, based on opening season prices announced last weekreports The Weekly Times. Industry sources say that is the sort of loss facing average-sized suppliers, whose cost of production is about 35 cents a litre, but who will only receive 26-34.5 cents a litre this season. Not since the 2002-03 season has the dairy industry battled with prices this low. Back then, the closing milk price was about $3.37kg/MS or 25c a litre. While these figures are only opening prices, the news that dairy farmers could face a year milking for between 26c and 34.5c a litre has prompted mixed feelings.Last week Tatura Milk Industries, with 28c a litre, were first-off the blocks and dairy giant Murray Goulburn followed two days later with an opening price of 26-27c. The rest of the industry spilled prices over the next few days. Fonterra suppliers learnt of their fate on Friday - $3.60kg/MS is what they have to budget on for this year. Warrnambool Cheese and Butter suppliers should expect an average of about 28c a litre or $3.78kg/MS, while United Dairy Power opened the season at 34.5c a litre. Kyabram company Australian Consolidated Milk opened at about 33.5c a litre. Bega Cheese's 60 suppliers scattered throughout Victoria and into southeast South Australia, who supply the export market, will receive an opening price of 28c a litre. Effective from next month, the new season Parmalat yearly average price equates to 34c a litre or $4.57/kgms.
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