Saputo Dairy Australia has advised suppliers of an opening weighted average farm gate milk price for non-exclusive supply has increased to $9.40 per kilogram milk solids.
This is an increase of 21 cents per kilogram of butterfat and 42 cents per kilogram of protein. Saputo’s exclusive minimum price has been increased by the same rates.
The company’s revised opening minimum milk prices are reflected in the Milk Supply Agreements.
The non-exclusive 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). Exclusive milk supply agreements are available to suppliers in our Northern Region and South-West Victoria and South Australia region.
This follows the minimum monthly prices and additional payments resulting in the seasonal opening weighted average farm gate milk price for non-exclusive supply of $8.50 per kilogram milk solids.
In addition, for the 2022-23 milk year, Saputo will offer exclusive Milk Supply Agreements (MSAs) in the Northern Region and South-West Victoria and South Australia region.
“We see the introduction of exclusive MSAs as a necessary step in response to changed market conditions in these regions,” a Saputo spokesperson said.
“The minimum milk price in our two exclusive MSAs includes a premium of 10 cents per kilogram butterfat and 20 cents per kilogram protein (approximately $0.15 cents per kilogram milk solids) over our minimum price in the non-exclusive MSAs.
“Finally, while the Code allows prospective step-downs in limited circumstances, SDA has again committed to no price step-downs in any circumstances during the year, which honours our ongoing promise to suppliers.”
-Saputo