Saputo Dairy Australia announced to its suppliers in the Southern Milk Region the 2019/20 opening average milk price will be $6.80 per kilogram milk solids.
SDA is pleased to be able to offer a strong opening price which reflects improving export market conditions that are expected to continue in the coming year.
There will also be a step up to the farmgate milk price for the 2018/19 season for all SDA suppliers in the Southern Milk Region, increasing the average price to $6.15 per kilogram milk solids.
From 1 July 2019, SDA will also introduce a single pricing structure and quality standard for all suppliers in the Southern Milk Region which aims to promote simplicity, transparency and fairness for all suppliers.
This simple pricing structure moves away from individual monthly pricing, with two prices covering August to December and January to July respectively, better enabling suppliers to operate their farms.
Through the new quality standard, SDA will be able to help suppliers recognise and resolve potential milk production issues faster, which aligns with the Company’s commitment to producing premium products using only the highest quality milk.
SDA believes the combination of a strong opening price paired with a simple, fair pricing structure and quality standard will help suppliers plan for the year ahead with added certainty and confidence.