Fonterra and Saputo Lift Milk Prices

Fonterra and Saputo have raised their 2025-26 milk prices. Saputo Dairy Australia will increase its opening offer by 15 to 20 cents, raising the weighted average milk price to $9 to $9.10/kg MS depending on the region. Meanwhile, Fonterra has lifted its price by 30 cents, taking its updated weighted average Australian milk price to $8.90/kg MS. The announcements from both companies came within hours of each other on Friday, June 13, closely following the deadline under the Dairy Code of Conduct for listing opening prices.

Fonterra Oceania managing director David Breckenridge stated, "I am pleased to let you know we are increasing our weighted average Australian milk price for the 2025-26 season by 30 cents/kg MS." Saputo Dairy Australia's milk supply director, Kate Ryan, emphasized their commitment to offering competitive prices, "We remain committed to offering a competitive milk price for our loyal supplier base and this early step-up reflects a considered position based on market conditions." The decision sparked reactions from farmers and industry bodies, indicating discontentment despite the price adjustments. This development sheds light on the ongoing challenges in the dairy supply chain and the balance required between pricing and sustainability.