Saputo has stepped up its southern milk price to $6.95 a kilogram milk solids.
The price represents a 10c/kg increase in butterfat and 20c/kg increase in protein.
It is a 2.2 per cent increase on its opening price of $6.80/kg MS.
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"Despite the ongoing US-China trade negotiations, demand remains steady across key export markets," it said.
It said it continued to focus on maximising value from the domestic market and welcomed the recent Australian Competition and Consumer Commission's decision allowing it to proceed with the takeover of Lion's specialty cheese business.
The company said it acknowledged the challenges caused by current conditions in many regions.
It said finance options were available to suppliers to assist with the purchase of feed, fertiliser and water.
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Read more stories like this the Australian Dairyfarmer website