Murray Goulburn, Australia's biggest dairy co-operative, has confirmed a full-year forecast farmgate price of A$6 per kg of milk solids.
Victoria-based Murray Goulburn (MG), with annual revenue of about A$2.9 billion ($3 billion), is Australia's biggest dairy co-operative but is a mere minnow compared with Fonterra, whose revenue last year came to $22.3 billion.
The co-op is responsible for about 37 per cent of Australia's dairy volume, compared with Fonterra at close to 90 per cent of New Zealand's volume. Fonterra last week said it was sticking with its $4.70 per kg farmgate milk price forecast for 2014/15.
MG said a final price of A$6 per kg milk solids would be its third highest farmgate price on record and would be delivered despite a significant drop in global dairy commodity prices mid-way through last year.
"Key dairy ingredients prices globally have fallen significantly in the past six months, dragging down farmgate prices in dairy exporting countries by up to 40 per cent," said managing director Gary Helou.