Murray Goulburn (MG) has cut the price it pays for milk again as global conditions continue to weigh on the dairy processor.
MG said it expects to pay dairy farmers $4.80 per kilogram of milk solids (kgms) for the year ending 30 June, 2017.
MG's interim CEO David Mallinson, said: “Commodity prices remain the largest external influence on MG's financial performance.”
Global conditions have not improved, he said, with key commodity prices remaining below US$3,000 per tonne for almost two years, much longer than historical price downturns.
“We acknowledge FY17 will be a challenging year for our suppliers. We have set a robust forecast, and while there are a number of areas which may provide upside to our FY17 forecast, we do not believe it is prudent to include these in our forecast at this stage,” Mallinson said.
“Should more positive conditions emerge, MG will be vigilant in ensuring any upside passes to our suppliers and investors.”
