PRICE RISES: Both Fonterra and Saputo announce milk price increases. Picture: Neil Richardson
Fonterra Australia set its Fixed Base Milk Price for the 2018-19 season as $5.90 per kilogram of milk solids on Friday, the same day Saputo announced a farmgate price increase for all its 2017-18 suppliers.
Dairy farmers who supply Fonterra can lock in up to 70 per cent of their season’s milk at a fixed rice under the scheme, Fonterra Farm Source general manager Matt Watt said.
“Certainty can be particularly important for farmers at times when they are considering business investments such as expansion or undertaking a new conversion,” Mr Watt said.
Fonterra used a tender allocation process to determine volumes and prices for milk solids.
Saputo’s increased payments of five cents per kilogram for butterfat and 11 cents for protein brings the average farmgate price to $5.68 per kilogram of milk solids.
This price is up from $5.60 per kilogram of milk solids, a Saputo spokesman said.
“We are focused on building milk supply in Victoria and Tasmania as a priority,” he said.
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