Australia’s dairy processors are gearing up with competitive new pricing systems to try to attract milk suppliers.
New Zealand-owned dairy giant Fonterra has simplified its pricing structure and will pay farmers a higher base price.
And cashed up Bega Cheese is offering a three-cents-a-litre incentive if farmers sign up to supply milk for three years.
It’s flush with funds after selling its stake in Warrnambool Cheese and Butter in the recent takeover by Canadian dairy company, Saputo.
The company made in excess of $60 million from selling its WCB shares to Saputo.
Last month, unnamed investors bought $52 million worth of Bega shares after the company made it to the top 200 companies list on the Australian Stock Exchange.
Bega Cheese executive chair Barry Irvin is on the lookout for investment opportunities.
“We still see that there are more corporate opportunities out there and we’re investing and thinking about them,” he said.
“We’re also going to invest back in our own business and equally we want to encourage investment in growth, because we see that the industry will be stronger if it grows.
“So it’s not just one company trying to take milk off another company. It’s about trying to grow the entire industry.”
Source: ABC Rural