Saputo has announced a seven cents a kilogram step up for butterfat and 14 cents, for protein.

This increases SDA’s weighted average farmgate milk price for the 2020/21 season in the Southern Milk Region to $6.50 per kilogram milk solids (up from $6.40 per kilogram milk solids).

Bega Cheese and Burra Foods have stepped up milk prices for their southern Australia suppliers – their first step ups this season.

They join one other company – Bulla Dairy Foods – in increasing prices this season.

Both announced prices are stepping up by $0.10 a kilogram milk solids.

Farmers have been agitating for an increase in the farmgate milk price in southern Australia on the back of improved global dairy prices.

The Global Dairy Trade auction posted its seventh consecutive increase last week, with the GDT price index now 22.9pc higher than in November.

Dairy lobby group Farmer Power welcomed the announcement by Bega.

“All that is needed now is for other processors to also act,” it said.

Bega’s price increases from $6.40 to $6.50/kg milk solids in southern Victoria and from $6.55 to $6.65/kg milk solids in northern Victoria.

Bega Valley region suppliers will receive $7.60/kg milk solids.

The increase does not apply to the recently-acquired Lion Dairy and Drinks and DFMC contracted suppliers.

“It is pleasing to announce this milk price improvement for milk supplied in the 2020/21 year,” Bega chairman Barry Irvin said.