Dairy processors are "jostling for position" as the deadline looms to lock in opening farm gate milk prices.
Fonterra is the latest processor to announce a step up.
Managing director Rene Dedoncker has told suppliers, Fonterra will now offer $9.20/kg MS for the 2023/24 season.
That's up a further 20c/kg MS and comprises a payment of 17 cents per kg of butterfat and 24c/kg of protein.
Fonterra is the latest processors to announce step ups, ahead of the July 1 contract deadline.
Lactalis announced it is increasing its price from $9.50-9.75 a kilogram Milk Solids for Victoria, the southern Riverina and Tasmania.
ACM stepped up its weighted average milk price by 15c/kg MS, taking it to a price range of $8.84-9.67.
"The price increase is reflective of the commercial arrangements we have been able to secure for our milk solids and our intent to ensure our suppliers have a strong and market relative price for the 2023-24 season," ACM chairman Michael Auld said.
Australian Dairy Farmers Corporation also raised its price by 20c/kg MS to an average price of $9.60/kg MS, based on four pc fat and 3.2pc protein.
Saputo Dairy Australia (SDA) announced a revised opening weighted average milk price of $9.15-9.30 per kilogram milk solids.
That's an increase of 17 cents per kilogram of butterfat and 34 cents per kilogram of protein, or 25c/kg MS.
The processor also announced a final step up for this season; 10c/kg MS, or seven cents/kg of butterfat and 14c/kg of protein.
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It comes as the latest Dairy Australia figures show there was an increase of 1.6 per cent in national milk production, in May, compared with the same time for the previous year.
Year-to-date the figure was down 5.3pc.
For Victoria, the decline in production slowed - but it was still down 0.3pc. Year-to-date production is down 6.4pc.
Milk production in Gippsland and western Victoria increased - by .1pc and 3.5pc respectively.
It dropped in northern Victoria by 4.5pc.
Year to date Gippsland was down 7.2pc, northern Victoria 7.4pc and western Victoria 4.7pc.
Dairy Australia industry analyst Eliza Redfern said after the initial opening minimum milk price announcements on June 1st, many processors had announced step ups, offering prices close to or above $9.00/kg MS.
"With milk production having declined during the 2022/23 season, competition to secure milk amongst the processors remains strong, particularly in light of the excess stainless steel capacity in several dairying regions," she said.
"Since the introduction of the Dairy Code of Conduct, a flurry of initial step ups are noted around the opening of the season, in an attempt to secure supply as farmers assess their milk supply arrangements and the various agreements on offer.
"While there is potential for step ups to occur during the 23/24 season, they may be limited, particularly in comparison to seasons before the existence of the code."
Rabobank senior dairy analyst Michael Harvey said it wasn't surprising to see "jostling for position" in the lead up to the new season, given the heated competition for supply.
"Broadly speaking, milk prices have come in above our expectations which is a pleasing thing for dairy farm businesses," he said.
"More importantly, new season milk prices are now guaranteed, and at levels that will support farm profitability.
"Once the new season commences, further upside in milk prices will be underpinned by market conditions."
Mr Harvey said it would be hard to see markets improving enough to drive the farmgate price higher.
In the near-term commodity markets remained soft.
"US dollar prices commodity prices are still falling, and the Australian dollar has been firming," he said. "So, this is eroding export and ingredient returns even more.
"Domestic markets are performing better due to higher price points, but there is consumer trading down to lower margin products and imports are picking up."
The global downturn would take a China market "rebalance.
"Most of the levers for this to happen have been triggered," he said.
"But the rebalance is still a few months away and persistently strong local milk production growth in China is still a concern."