Bulla Dairy Foods has announced most of its more than 200 suppliers will get between $8.70 and $8.90 a kilogram Milk Solids from the start of the new season.
Bulla Foods Dairy and Procurement general manager Rohan Davies announced the updated opening milk price, up from its initial announcement of $7.40-8/kg MS.
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"We've seen dairy prices lift substantially in recent years, in particular this year in a competitive milk market, and we're happy that dairy farmers around Australia will see the benefit of the current market conditions in their own respective businesses," Mr Davies said.
"The past twelve months has presented a range of challenges with local and global supply chain disruptions, rising input costs and other Covid-related impacts.
'"However, Bulla's market share and business performance continues to be strong."
Meanwhile, Saptuo has also announced an opening price of $8.50/kg MS.
It last stepped up to $7.25/kg MS in March, this year.
"The minimum price is the price we will pay monthly to suppliers for non-exclusive supply of premium quality milk in each of the northern Region, south-west Victoria and South Australia region, Gippsland region and Tasmania (including King Island)," a Saputo spokesman said.
"In addition to the minimum price, SDA will continue our usual additional payments to suppliers, including the monthly milk quality bonus, productivity payment and off-peak payment."
Saputo said exclusive Milk Supply Agreements (MSAs) would be offered in the northern region and south-west Victoria.
"We see the introduction of exclusive MSAs as a necessary step in response to changed market conditions in these regions," the spokesman said.
"The minimum milk price in our two exclusive MSAs includes a premium of 10c/kg butterfat and 20c/kg protein (approximately 15c/kg MS over our minimum price in the non-exclusive MSAs."
Mr Davies said Bulla had a solid finish to the current year and was able to build on that position, with the updated season pricing to provide a 'large lift' in farmgate value.
"As a 110 year old family owned dairy processor, we understand the importance of a sustainable dairy industry and a dependable supply, and a strong return for the hard work of dairy farmers is vital to this," he said.
"And so we feel proud to be able to pay forward our own growth and performance with existing and new dairy supply partners this year.
"In addition to the 2022/23 season step up, we're also pleased to offer existing suppliers an increased closing milk price for the 2021/22 season with an additional .05c kg/MS to be paid retrospectively on milk supplied to Bulla from July 1 2021."
Milk price was a guaranteed minimum for the season and step-ups would be announced, throughout the year, as business conditions permitted, Mr Davies said.
