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New Bonlac option: payment plan aims to lift production
14 Jul 2004
Bonlac Foods has introduced a new pricing option aimed at helping farmers lift production. The "7/5 Seasonal Payment" pays farmers a premium for seven months and a base payment for the remaining five months. For this season, the premium price is $2.45 kilogram butterfat and $5.92 kilogram protein, while the base price is $2.13 kilogram of butterfat and $5.13 kilogram of protein.
Bonlac said the option provides farmers with clearer pricing signals and better pricing predictability to manage production. It shifts toward paying farmers more during their seven-month shoulder milk flow and away from end of season increments when farm input costs are high and milk flow is low, chairman Noel Campbell said. It gives farmers the potential to increase production and returns at times when feed costs are usually lower.
United Dairyfarmers of Victoria welcomed the new system and said it gives farmers more options. Farmers can examine whether their farming structure could be made more profitable by fitting in with the new pricing system.
Weekly Times, 14/7/04, page 3.
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