Aussy Dairy Farmgate Prices: Bulla, Kyvalley, ACM, Lactalis on Step Ups

Rising International Dairy Prices and Local Impacts

With international dairy commodity prices on an upward trajectory as autumn approaches, Bulla is eyeing a price review in mid-February. Notably, this week, the Australian Dairy Farmers Corporation offered the season's highest farmgate increase, uplifting prices by 20 cents to reach an average of $8.40 per kilo milk solids.

Fonterra initiated the season's price hike with a pre-Christmas surge of 15 cents, establishing a weighted average milk price of $8.15 per kilo milk solids. This move was rapidly followed by Bega and Saputo, each raising prices by 15 cents during the festive season. However, other smaller processors, apart from the Australian Dairy Farmers Corporation, have been slower to adjust, with Australian Consolidated Milk recently choosing not to implement a summer price increment.

Prospects of Further Price Adjustments

Allan Hood, CEO of Bulla Dairy Foods, confirmed plans to re-evaluate pricing soon, with an update expected in the coming weeks. This reassessment is consistent with commitments made to farming partners during Christmas forums.

Alongside Bulla, other medium-sized processors such as Burra, Frestine, KyValley, and Lactalis have remained cautious about potential pricing adjustments. Meanwhile, ACM's CEO, Jason Limbrick, has scheduled the next review for March 2025, indicating a possible future increment.

Dairy Market Dynamics

Recently, the Global Dairy Trade index recorded one of the most significant increases this financial year, climbing by 3.7% to achieve $US4296 ($A6868). Fonterra's Richard Allen highlighted this development, noting substantial growth in several GDT categories, including whole milk powder, which rose from $US3000 per tonne to over $US4000.

This price trend has been partly fueled by China's renewed market presence, marking a positive shift for the season.