SAPUTO Dairy Australia (SDA) has announced to suppliers in the Southern Milk Region that our 2021/22 opening weighted average farm gate milk price will be $6.65 per kilogram milk solids.

It compares with the announcements by other companies: Fonterra $6.55kg (On Friday, June 4 this was revised to $6.85kg) MS, Bulla $6.40 – $6.90kg MS and Burra Foods $6.40 – $6.80kg MS but as they say, “it’s not where they start but where they finish that matters most”.

In its statement today, SDA has published opening minimum milk prices in a standard non-exclusive Milk Supply Agreement (MSA) for the Southern Milk Region.

“The minimum prices are the price we will pay monthly to suppliers for premium quality milk,” Saputo said in its public statement.

“In addition to the minimum prices in our MSA, SDA will continue additional payments to suppliers, including the monthly milk quality bonus, productivity payment and off-peak payment. Together, the minimum prices and additional payments result in the weighted average farm gate milk price.

“SDA’s standard MSA and pricing model promotes simplicity, transparency and fairness for all suppliers to help them plan for the year ahead with certainty and confidence.

“While the Code allows prospective step-downs in limited circumstances, SDA has again committed to no price step-downs in any circumstances during the year, which honours our ongoing promise to suppliers.

“Determining the outlook for milk prices for the 2021/22 milk year has again been challenging, despite some recent improvements and stabilisation in global trade conditions. Ongoing uncertainty in commodity prices and exchange rates arising from the COVID–19 pandemic is expected to continue to impact world economies and the dairy market for the coming milk year.

“Despite this, SDA’s objectives remain the same. We are well placed, with our diverse product mix and markets, to adjust to evolving market conditions and continue maximising the value of every litre of milk.”