ol CEO says that the increase has taken its weighted average milk price to $6.05 per kilogram of milk solids, and a revised forecast of the company’s full year price range has risen to between $6.15 and $6.30 per kilogram milk solids.The company sights continued stability in world dairy prices as the key driver for the step up, however the company also stressed that variable external factors such as market demand, supply growth, world dairy prices and exchange rates make longer term outlooks more difficult to predict.
Warrnambool says that the new full year forecast range is indicative only, and milk prices will be reviewed again in January as part of the next quarterly review.
The increases are retrospective and apply to milk supplied from 1 July with payment to be made with October 2013 proceeds during November to current milk suppliers.
Warrnambool is currently in the middle of a bidding war between Bega Cheese limited, Canadian dairy processor Supato Inc and Murray Goulburn. All of which have made takeover offers for the Victorian based dairy.
