Saputo Sets New Milestone with Increased Milk Prices for 2025-26
Saputo Dairy Australia has unveiled its new milk price for the 2025-26 season, marking a competitive entry into the market with an opening weighted average of $8.80 to $8.95 per kilogram of milk solids (kgMS). This announcement positions SDA ahead of competitors such as Fonterra, which set its price at $8.60kgMS, and Burra Foods, which announced a range between $8.60 and $9.10kgMS.
The unveiling of these prices comes amidst a challenging backdrop for dairy farmers, particularly in Victoria, where prolonged dry conditions and increasing production costs have strained operations. Dairy Farmers Victoria President, Mark Billing, has called the Fonterra price inadequate to sustain farmers through the ongoing crisis.
Mr. Billing has urged all processors, including Fonterra, to rethink their pricing strategies to better support the dairy sector, emphasizing the need for pricing that accurately reflects the costs of production rather than market signals.
Despite the difficulties, David Breckenridge, Managing Director of Fonterra Oceania, highlighted positive signs for the future, including an increase in global dairy prices over the past year and strong Australian dairy export performance.
Saputo Dairy Australia also offers various support mechanisms for its suppliers, including flexible payment options and tailored programs to aid farm business goals, secure cash flow, and improve sustainability on the farm. Kate Ryan, Director of Milk Supply and Planning, noted that while macroeconomic challenges persist, SDA remains optimistic about long-term growth prospects in the dairy industry.
SDA's commitment to flexible supply agreements aims to not only shield its suppliers in tough times but also capitalize on favorable market conditions as they arise throughout the season.
