Dairy companies have announced their opening farm gate milk prices, which remain historically strong.
Fonterra Australia has announced an opening weighted average milk price for the 2023-24 season of $8.65/kg milk solids.
This minimum price includes standard production and quality incentives.
Saputo Dairy Australia has announced its opening weighted average milk price of $8.90 to $9.05/kg MS for exclusive supply in the 2023-24 season.
Milk prices for exclusive supply are available to suppliers in the northern region, south-west Victoria and South Australia region, Gippsland region and Tasmania (including King Island).
Saputo’s exclusive minimum milk price includes an additional 15¢/kg MS ($0.10/kg butterfat and $0.20/kg protein) above the non-exclusive minimum milk price to be offered in each region.
Fonterra Australia managing director René Dedoncker said Australian farm gate pricing for the season ahead remains higher than international commodity values, which have fallen by 17 per cent in the past year, however is supported by the strength of Fonterra Australia’s domestic business which comprises most of its revenue.
“Despite the decline in international prices, the outlook for dairy remains generally positive with global demand currently expected to lift in the medium-term, with only modest supply growth forecast in export regions,” he said.
Mr Dedoncker said Fonterra Australia’s business was well-placed to continue to deliver good returns.
Norco Co-operative, Australia’s largest dairy co-operative, has announced a record farm gate milk price increase for its farmers, which will see Norco’s 281 suppliers receive an additional 1.1¢/litre — taking the average price to 88¢/litre ($0.88) — reflecting the highest farm gate milk price (on average) Norco dairy farmers have ever received.
Australian Dairy Farmers president Rick Gladigau said thanks to the Mandatory Dairy Code of Conduct, dairy farmers now have a month to consider processors’ offers, get milk price income estimations and sign an agreement.
“Importantly, the code is about more than just price. It imposes minimum standards of conduct on processors and dairy farmers, who must deal in good faith,” Mr Gladigau said.
“As farmers watch their input costs increase and the industry navigates a shrinking milk pool, the farmer-processor relationship will be more important than ever before.
“Farm gate prices and cooperation around the code are two key ways we can continue to restore trust.”
Burra Foods has announced its minimum price range between $8.50 and $9/kg MS.
The company acknowledged this was a reduction on the current year.
