General News
5 June, 2024
Saputo reveals opening milk price
SAPUTO Dairy Australia (SDA) has announced to suppliers its opening weighted average milk price of $8 to $8.15 per kilogram of milk solids (kgMS) for exclusive supply in the 2024-25 season.
SDA’s milk prices for exclusive supply are available to suppliers in the Northern region, south-west Victoria and South Australia, Gippsland and Tasmania.
To help farmers meet their business goals, SDA provides a range of tailored support and payment options, including a Dairy Investment Rebate and Milk Cooling Rebate to support on-farm infrastructure investment.
A flat monthly payment option is available to suppliers that prefer a consistent payment structure throughout the year and a growth payment of $0.70 per kilogram milk solids on any net growth in a farm’s milk solids, as well as finance options.
Through partnerships with Dairy Australia, SDA also supports its farmers to access industry programs to further strengthen their business and sustainability performance.
SDA’s director of milk supply and planning Kate Ryan said the opening milk price factored in ongoing global market volatility due to subdued demand, as well as greater variability in domestic markets and anticipated market returns.
“As we see more market certainty, we would expect to review our prices during the year,” she said.
“SDA’s strong business position supports us paying a premium above current commodity price returns.
“This is due to business efficiencies achieved over recent years, including network optimisation initiatives taken to strengthen our competitiveness, reduce costs and ensure higher utilisation through our facilities.
“As part of SDA’s long-term commitment to the Australian dairy sector, we continue to support our farmers’ growth and business success with a range of ongoing specialised services and programs, while also investing in our operations, in the industry and in our regional communities.”
The milk prices quoted above are a weighted average across SDA’s supply base.
Milk prices achieved at an individual farm level will vary based on specific milk supply circumstances.
A schedule of monthly minimum milk prices will be available in SDA’s milk supply agreements published online at www.saputodairyaustralia.com.au/milk-supply.
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