SAPUTO Dairy Australia has announced an opening price for 2019-20 of $6.80 a kilogram of milk solids and moved to a simpler pricing system for the coming season.
The company, has also issued a step-up for the current season, taking its average price to date to $6.15/kg MS.
“SDA is pleased to be able to offer a strong opening price which reflects improving export market conditions that are expected to continue in the coming year,” the company said.
“From July 1, 2019 SDA will also introduce a single pricing structure and quality standard for all suppliers in the southern milk region, which aims to promote simplicity, transparency and fairness for all suppliers.
“This simple pricing structure moves away from individual monthly pricing, with two prices covering August to December and January to July, respectively, better enabling suppliers to operate their farms.”
Saputo said its new quality standard would help suppliers recognise and resolve milk production issues faster.
It said a strong opening price and a simple, fairer pricing structure and quality standards would help its dairy farmers in the year ahead.