- Opening should be "above $9" says Ben Vagg
SAPUTO Dairy Australia (SDA) has announced to suppliers its opening weighted average milk price of $8.00 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.
The announcement comes at the start of the new milk price season and typically there’s a lot of tinkering around the edges as other milk factories hit the market with more competitive pricing.
Fonterra announced “an opening 2024/25 season forecast Farmgate Milk Price” yesterday of $7.25-8.75 per kgMS with a midpoint of $8.00 per kgMS.
Local committee member for Dairy Farmers Victoria, Ben Vagg of Leongatha South said the offer wasn’t enough and dairy farmers should be prepared to give their views to their processor.
“The processors need us and we need the processors but we should be more vocal telling them they have to go higher,” Mr Vagg said.
“And I think they are saying they are willing to go higher.
“It’s too low. We need to end up above $9.
“We are going alright here in South Gippsland and West Gippsland but feed costs are going through the roof in other areas.
“And all the commodity prices, our inputs, are going up and they’re not coming down.
“We are starting to see some modest improvement in international prices for milk products and the processors need to be giving those good signals to the suppliers at a time when they are making their plans,” he said.
Saputo has wrapped its announcement in a suite of support options designed to encourage investment and promote loyalty.
“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,” said Saputo in its statement today.
“Through partnerships with Dairy Australia, SDA also supports its farmers to access industry programs to further strengthen their business and sustainability performance.”
Kate Ryan, SDA’s Director of Milk Supply and Planning said “Our opening milk price factors 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.”
“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
About Saputo Dairy Australia Saputo Dairy Australia produces, markets and distributes a wide range of high-quality dairy and non-dairy products for the domestic and international markets including cheese, dairy alternative cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is a leading dairy processor in Australia and is part of Saputo Inc., one of the top ten dairy processors in the world. Saputo Dairy Australia products are sold in several countries under well-known brand names such as Caboolture, CHEER, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, MG Ingredients, Mil Lel, Sheese, South Cape, Sungold and Tasmanian Heritage. Visit Saputo online: www.saputodairyaustralia.com.au | www.saputo.com
