After making several cuts this year, dairy processing giant, Murray Goulburn (ASX:MGC), says it will now increase milk prices for dairy farmers.
The company has increased its Farmgate Milk Price by 15 cents per kilogram milk solids. The company says the international dairy markets have seen improvements recently. This financial year, the new price for Murray Goulburn suppliers is $4.46kg/ms.
This is lower than what its competitors are paying their suppliers. For example, Bega is paying $5 kg/ms, while Fonterra is paying $4.75 kg/ms.
The company says it does not expect any change to its existing net profit after guidance.