Saputo Suppliers See Holiday Boost with Farm Gate Milk Price Increase
Source: DairyNews.today
Saputo Dairy Australia has delivered a festive boost to its suppliers, announcing a modest increase in farm gate milk prices for the 2024-25 season.
The company informed suppliers of a 15-cent rise per kilogram of milk solids (kgMS) for the current season, lifting the weighted average farm gate milk price to between $8.15 and $8.30 per kgMS for exclusive suppliers in southern milk regions.
Delayed Payout
While the announcement provides some holiday cheer, the financial benefit will not be immediate. Payments reflecting the step-up will be included in December 2024 proceeds and disbursed in January 2025.
The adjustment will automatically apply to all qualifying milk supplied under exclusive Saputo Dairy Australia agreements since July 2024.
Impact on Suppliers
The quoted milk prices represent a weighted average across Saputo’s supply base, with individual farm-level prices varying based on milk quality, supply arrangements, and other factors.
Saputo’s move comes amid ongoing global and domestic pressures on the dairy industry, offering suppliers a slight financial boost as they manage rising operational costs.
Industry Context
The announcement aligns with broader trends in the dairy sector, where competitive milk pricing has become crucial in retaining and attracting suppliers. Saputo’s incremental step-up reflects the company’s commitment to supporting its supply network while navigating volatile market conditions.
For suppliers, the increase signals a positive start to the new year, offering a small but welcome financial cushion as they plan for 2025.
Delayed Payout
While the announcement provides some holiday cheer, the financial benefit will not be immediate. Payments reflecting the step-up will be included in December 2024 proceeds and disbursed in January 2025.
The adjustment will automatically apply to all qualifying milk supplied under exclusive Saputo Dairy Australia agreements since July 2024.
Impact on Suppliers
The quoted milk prices represent a weighted average across Saputo’s supply base, with individual farm-level prices varying based on milk quality, supply arrangements, and other factors.
Saputo’s move comes amid ongoing global and domestic pressures on the dairy industry, offering suppliers a slight financial boost as they manage rising operational costs.
Industry Context
The announcement aligns with broader trends in the dairy sector, where competitive milk pricing has become crucial in retaining and attracting suppliers. Saputo’s incremental step-up reflects the company’s commitment to supporting its supply network while navigating volatile market conditions.
For suppliers, the increase signals a positive start to the new year, offering a small but welcome financial cushion as they plan for 2025.
