In his statement to suppliers managing director Stephen O’Rourke announced a price increase of $0.25/kg protein and $0.10/kg butterfat for milk supplied across the 2009/10 season.

"This increase in farmgate milk price represents the payment of approximately $35 million to our suppliers over the year," Mr O'Rourke said.

"This flows on to rural communities and the Australian economy.

"As Australia’s farmer-owned dairy company we will continue to play the vital role of lifting farmgate milk prices as the market returns improve.

"The co-operative remains in good health post the global financial crisis and is well placed to consider projects that provide immediate as well as longer-term benefits to suppliers - including processing efficiency gains and increasing sales of value-added products."

Murray Goulburn Co-Operative is Australia’s largest exporter of processed food, employs more than 2000 people in regional Australia and is wholly owned by dairy farmer shareholders.

Its flagship brand is Devondale.