In a media release, the dairy company stated that this final step-up payment is retrospective and applies to milk supplied from 1 July 2010 – 30 June 2011. Payment will be made with July 2011 proceeds during August 2011 to current milk suppliers.

The increase takes its final average price across the 12 months to 42.5 cpl or $5.75 per kilogram milk solids equivalent.

“This final price is the second highest milk price paid in the Company’s history and reflects our performance on the export and domestic marketplace," WCB CEO David Lord said.

“We wanted to deliver on our commitment of a strong competitive price for our suppliers and to provide solid returns for their milk over the long term.

“WCB is seeking to strengthen its relationship with existing and new suppliers. The best way to deliver this is a competitive price and payment options that meet farmer’s expectations.

“We have been listening to milk suppliers and have put together a payment package that we believe makes a strong case for suppliers to join WCB. The new payment arrangements for 2011/12 give suppliers real choice, flexibility and improved cash flow.

“The new changes have been well received, particularly the ‘safety-net’ clause which guarantees the highest payment option. This mitigates the risk to suppliers of changes to their business circumstances during the year.

WCB is seeking additional milk supply to meet market opportunities and expanded plant capacity.