MG managing director Stephen O’Rourke said a price increase of $0.20/kg protein and $0.08/kg butterfat for milk supplied across the entire year and a further $0.50/kg protein and $0.20/kg butterfat for milk to be supplied between January 1, 2010, to June 30, 2010.

“This increase in farmgate milk price represents the payment of about $60 million to our suppliers over the year," he said.

“Market settings for major dairy products such as milk powders, cheese and butter have firmed and consolidated. When added to strong domestic sales via the Devondale brand the co-operative’s position in this financial year has improved.

“Even with this increase in farmgate price we realise farm margins are tight and we will continue to review the market outlook and company budgets with an eye to further increase prices this financial year if the market allows."