Saputo Dairy Australia Supplier Relations director Anthony Cook has told farmers the butter fat price will rise by 14c/kg, while protein will increase by 28c/kg.
The payment is retrospective, applying to all qualifying milk supplied since July 1 last year.
“The step-up increases our weighted average farmgate milk price for the 2021/22 season in the southern milk region to $7.25 kg/MS,” Mr Cook said.
The weighted average is based on the monthly minimum price, monthly milk quality bonus, productivity off-peak and northern region payments.
“Since our review in January 2022, international demand and global dairy market prices remain strong and improvements in commodity prices are beginning to be realised in our business,” Mr Cook said.
“Milk production in many key dairy producing regions remains subdued, supporting demand and pricing.”
Mr Cook said retail demand remained steady in the domestic market, while foodservice demand continued to improve.
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