Müller Wiseman Dairies has confirmed that its new Müller Wiseman Formula Price will return 32.27ppl in its first quarter, from July to September 2013.
The Müller Wiseman Formula Price will be recalculated on a quarterly basis using publically available benchmarks: Actual Milk Price Equivalent (AMPE), Milk for Cheese Equivalent (MCVE) and a basket of competitor milk prices.
Müller Wiseman Milk Group members who receive the standard milk price can apply to sell a minimum of 10% of their milk volume (based on previous year’s figures) under this new option, with a tender process set to take place during June to gauge demand.
“This is a strong opening price which reflects a good period for dairy commodities underpinned by relatively high standard litre prices,” said Pete Nicholson, agricultural affairs manager for Müller Wiseman Dairies. “We think there will be significant interest in this option, but we want to stress that the Formula Price will expose dairy farmers to more of the volatility which comes with a direct link with global dairy commodities.
“For example, the average Müller Wiseman Dairies standard litre price last year at 28.27ppl was some 1.69ppl ahead of what the Müller Wiseman Formula Price would have offered had it been available at the time. But the first quarter formula milk price from July to September is some 0.77ppl ahead of the current Müller Wiseman Standard Price.”
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