Saputo Dairy Australia opening milk price announced

The Canadian-owned dairy processor announced on Thursday afternoon its opening weighted average milk price of $8.90-$9.05 a kilogram milk solids.

The price is at least 25c/kg MS more than the $8.65/kg MS Fonterra announced it would pay its suppliers for the coming financial year on Thursday morning.

Milk prices for exclusive supply are available to Saputo 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 15c/kg MS (10c/kg butterfat and 20c/kg protein) above the non-exclusive minimum milk price to be offered in each region.

Expanding on its existing Dairy Investment Rebate and Milk Cooling Rebate programs, this year Saputo has introduced a new Growth Payment of 70c/kg MS on any net growth in a farm's milk solids to encourage growth across its supplier base and the Australian dairy industry.

An extra flat payment option will also be introduced, which will appeal to a broad range of different farming profiles that prefer a flat payment structure.

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Saputo supplier relations director Anthony Cook said the company had enhanced its milk price offer to meet the needs of more suppliers.

"We have invested in new payment options and incentives, including for farmers who want to invest in the growth and sustainability of their dairy business," Mr Cook said.

"As part of our ongoing commitment to the Australian dairy industry, we have expanded our tailored investment and finance support, payment options and continue our specialist services to further assist suppliers in meeting their short and long-term business goals.

"We are also proud of our continued investment in industry initiatives, in our plants and in the communities where our people and our dairy farmers live and work."