Lion today announced it has agreed to pay a record increase to its Far North QLD milk price, together with further increases in South East QLD and NSW. These increases position Lion as the clear leader across these regions, demonstrating confidence in the Northern dairy industry and Lion’s own growth strategy.
Collectively, Lion’s price increases will deliver over $10m in additional payments back to the farmgate compared to a year ago, and the removal of tier 2 pricing from all new Lion contracts on offer will ensure that farmers benefit from the increase in price on every litre they produce.
In Far North QLD, Lion’s weighted price will increase to 59.3cpl, the highest price seen by suppliers in the region in recent years. This change, applicable to all DFMC farmers supplying milk for Lion in Far North QLD, equates to an increase of approximately five cents per litre on Lion’s last season price.
In South East QLD and NSW, Lion’s weighted pricing will increase to 57cpl and 53.8cpl, a leading price in both markets. This equates to an increase of approximately 1 cent per litre on Lion’s opening price across these regions, and represents the highest pricing seen by suppliers in recent years.
According to Lion Agricultural Procurement Director, Murray Jeffrey, Lion’s announcement recognises the challenges faced by farmers in recent years and delivers a strong vote of confidence in the Northern dairy industry, consistent with the unique conditions and dynamics of each market.
“We know that many of our suppliers have been doing it tough in recent years and believe this increase will provide greater certainty and confidence for the future.
“Lion’s approach is to deliver a mix of compelling pricing, tenure and other benefits tailored to each market, with a focus on providing real choice for suppliers.
“We have great faith in the Northern dairy industry and want to continue to work closely with our partners to ensure farmers have a sustainable future, built on growth and growing value back into the industry.”
The increase is applicable to all DFMC farmers supplying Lion in Far North QLD and all Lion direct farmers in South East QLD and NSW.
The increases will come into effect from 1 July 2014.