Saputo announces southern milk price step up

Saputo Dairy Australia supplier relations director Anthony Cook told farmers the butter fat price would rise by 14c/kg, while protein will increase by 28c/kg.

The payment is retrospective, applying to all qualifying milk supplied since July 1 last year.

"The step up increases our weighted average farmgate milk price for the 2021-22 season in the southern milk region to $7.25/kg MS," Mr Cook said.

The last step up, to $7.05/kg MS, was in November 2021.

The weighted average is based on the monthly minimum price, monthly milk quality bonus, productivity off-peak and northern region payments.

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"Since our review in January 2022, international demand and global dairy market prices remain strong and improvements in commodity prices are being realised in our business," Mr Cook said.

"Milk production in many key dairy-producing regions remains subdued, supporting demand and pricing."

He said retail demand remained steady in the domestic market.

In late March, Burra Foods announced a 20c/kg MS increase in its farmgate price for the full seasonal period in the 12 months from July 1.

At the time, Burra Foods chief executive Stewart Carson said a global imbalance in supply and demand had driven commodity prices higher.

In February, Fonterra stepped up its average farmgate milk price to $7.30/kg MS.

Bega Cheese announced a 15c/kg MS step up from January 1 and the Australian Dairy Farmers Corporation stepped up by 30c/kg MS to $7.95c/kg MS.