Saputo to increase farmgate milk prices

This is an eight c/kgms lift on the previous average price of $5.60, which was brought up by the lift of butterfat by five c/kgms and protein by 11c/kgms.

The news has been welcomed, with Woolsthorpe dairy farmer Brian McLaren saying it has helped restore some, but not all of his faith in the industry.

Mr McLaren had been a loyal Murray Goulburn supplier for almost 50 years, and came close to jumping ship last year when the company made big cuts to its milk prices.

He said he is glad he has stuck around.

“This is good news for suppliers who have been to hell and back,” Mr McLaren said.

“It’s going to in some way restore my faith in the dairy industry, but it won’t be as good as it once was.”

This payment is retrospective and applies to milk supplied by active Murray Goulburn and Warrnambool Cheese and Butter suppliers.

The payments will be made with April 2018 proceeds, sent out in May.

Saputo said in a statement that it is focused on building milk supply in Victoria and Tasmania as a priority.

The company said farmers looking to supply Saputo should get in contact with its field services teams.

The news comes after the announcement earlier in the week that Kiewa’s historic plant would not be closing, with Saputo deciding to keep it open and retain cream cheese production at the factory.

“We appreciate the uncertainty that employees at the Kiewa site have experienced in recent times and extend gratitude to them for their loyalty,” Saputo boss Lino Saputo said.

“We now look forward to working together to make Kiewa successful.”