Milk price cut to farmers

A large buyer of South Australian milk has announced a sharp cut to the price it pays farmers for milk.

Warrnambool Cheese and Butter is the latest processing company to slash the price it is offering farmers for their milk.

The company buys milk from farmers in the south east to the Adelaide hills, and has announced it will pay an average opening price of 28 cents per litre.

That figure is a drop of seven cents.

The comany is blaming the cuts on a volatile US exchange rate and falling international commodity prices.

Earlier, Warrnambool's competitor, Murray-Goulburn, announced that it would be cutting its milk price to 26 cents per litre, a move the company's chairman says will probably force some farmers out of the industry.

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Fri 3rd July 2009 - 09:32am