Murray Goulburn raises milk price

Milk processor Murray Goulburn will pay milk suppliers slightly more, after improvements in international dairy markets.

The company has increased its 2016/17 available southern milk region Farmgate Milk Price (FMP) by the equivalent of $0.15 per kilogram milk solids.

Suppliers will now receive a weighted average FMP of $4.46 per kgms after application of the Milk Supply Support Package (MSSP) repayment. The MSSP was designed to claw back loans to farmers after a shock cut to the FMP in April.

Murray Goulburn has also increased its annual FMP forecast $4.88 per kgms.