Saputo Dairy Australia has announced its opening minimum milk price of $8.50/kg of milk solids for the 2022-23 season for non-exclusive supply.
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Saputo will pay extra to exclusive suppliers for the 2022-23 season. Photo by Jamie Salter

Additional payments will apply for exclusive suppliers.

Saputo said the minimum price was the price it would pay monthly to suppliers for non-exclusive supply of premium quality milk in its Northern Region, South-West Victoria and South Australia Region, Gippsland Region and Tasmania (including King Island).

“In addition to the minimum price, SDA will continue our usual additional payments to suppliers, including the monthly milk quality bonus, productivity payment and off-peak payment,” the company said.

“In addition, for the 2022-23 milk year, we will offer exclusive Milk Supply Agreements (MSAs) in our Northern Region and South-West Victoria and South Australia Region.

“We see the introduction of exclusive MSAs as a necessary step in response to changed market conditions in these regions.

“The minimum milk price in our two exclusive MSAs includes a premium of 10¢/kg butterfat and 20¢/kg protein (approximately 15¢/kg MS) over our minimum price in the non-exclusive MSAs.

“Finally, while the [dairy] code allows prospective step-downs in limited circumstances, SDA has again committed to no price step-downs in any circumstances during the year, which honours our ongoing promise to suppliers.”

The nation’s power supply crisis and the prospect of rising prices are frustrating northern Victorian farmers.

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