Bega Cheese Ltd
(ASX:BGA) has released its opening farm gate milk price for the 2016/17 FY.
The company has reduced its farm gate milk price by around 11%. This equates to a Victoria farm gate price of $5 Kg milk solids.
The company says a a number of factors have impacted farm gate milk prices across the world.
They include significant growth in global milk supply, sanctions on Russian dairy imports, China’s demand slowing down and, simply, highly competitive markets.
The company says that analysts aren’t expecting dairy commodity returns until at least the first half of the 2017 calendar year.
Bega Cheese reported a net profit of $14.5 million at 27 December 2015.
