Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
This takes this season’s forecast payout to these 13 farms to $8/kgMS including the premium under the company’s Te Ara Miraka, the company’s farming excellence programme.
Miraka chief executive Karl Gradon joined 350 guests at the company’s annual suppliers dinner at Taupo last night to celebrate the milestone.
“We’re proud of our top 13 farms – a new record for Miraka – who share first place equally having each achieved the maximum 100 points under our farming excellence programme, Te Ara Miraka. In recognition, each farm receives our full premium payment of 20 cents per kg of milk solids, on top of our competitive milk price,” says Gradon.
“Our Te Ara Miraka programme rewards best practice on-farm in sustainability, animal welfare, people and milk quality.”
“We incentivise our suppliers to be the world’s best in these areas. Miraka is committed to supporting our farmers, with the best milk price, for the best farms and people.”
“It all begins on the farm. Our products, made from the quality milk our farmers supply, have performed exceptionally well in global markets and we have the solid backing of our shareholders. Accordingly, Miraka is well positioned to share that success via our milk price and premium payments under Te Ara Miraka,” said Karl Gradon.
Chad Hoggard, Miraka general manager of on-farm excellence, says Miraka farmers are leading the way.
“While we celebrate our top achievers, we’re also delighted that the bulk of our supplier base has made continuous improvements on-farm over the past three seasons. Our average farm, for example, has earned an extra 16 cents per kg of milk solids under Te Ara Miraka.
“We’ve worked closely with our farmers to simplify the key focus areas of Te Ara Miraka which, when combined with their efforts, results in higher levels of achievement,” says Hoggard.
Miraka recently announced a strong 2024/25 season milk price for its farmer suppliers of $8.42/kgMS, with the base price being $8.25/kgMS and farmers having the ability to earn an additional premium of up to 20c/kgMS.
