Saputo Cuts Milk Prices by 15%, Impacting Australian Farmers
Source: The DairyNews
Saputo, a major player in the global dairy industry based in Montreal, has reduced the price it pays Australian dairy farmers by 15%. This decision reflects a broader trend among large milk processors in Australia, including Fonterra and Bega, as they adjust to economic pressures.
This reduction in milk prices comes at a challenging time for farmers who have already been grappling with a series of adversities including droughts, the COVID-19 pandemic, labor shortages, rising land prices, and recent floods. The situation underscores the vulnerability of farmers outside of Canada's supply management system, which protects its dairy farmers fr om such volatile market shifts.
The Australian dairy sector has seen significant upheaval, with ten milk processing plants shutting down in the last 18 months. This contraction in the dairy processing industry has been compounded by a 10% increase in milk imports and a notable 17% decline in exports, adding further strain on the local market.
Saputo's move to cut prices is seen as a stark indication of the potential risks Canadian farmers could face without protective measures. The company, known primarily for its large-scale cheese production, plays a significant role in the dairy markets wh ere it operates, influencing pricing and production dynamics globally. The recent price cuts in Australia have garnered widespread sympathy for the affected farmers, highlighting the ongoing challenges within the dairy industry.
The Australian dairy sector has seen significant upheaval, with ten milk processing plants shutting down in the last 18 months. This contraction in the dairy processing industry has been compounded by a 10% increase in milk imports and a notable 17% decline in exports, adding further strain on the local market.
Saputo's move to cut prices is seen as a stark indication of the potential risks Canadian farmers could face without protective measures. The company, known primarily for its large-scale cheese production, plays a significant role in the dairy markets wh ere it operates, influencing pricing and production dynamics globally. The recent price cuts in Australia have garnered widespread sympathy for the affected farmers, highlighting the ongoing challenges within the dairy industry.
23.09.2024
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I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
