MILK price adjustments for the 2025-26 season continue, with Saputo Dairy Australia (SDA) announcing a step up of 20 cents per kilogram of milk solids for its Gippsland and Tasmanian suppliers, Burra Foods increasing its initial price for the 2026 Financial Year by the same amount.

SDA originally declared a weighted average price range of $8.80 - $8.95/kgMS for the new season across its regions, suggesting that the new applicable price range for Gippsland should be $9 - $9.15/kgMS.

The company’s press release confuses the matter by stating a new price range of $9 -$9.10/kgMS, with that weighted average said to apply to the Southern Region, which is listed as comprising Gippsland, South-West Victoria, South Australia, Tasmania and oddly the Northern region.

Only Gippsland and Tasmania have been granted the 20 cent step up, with suppliers in the Northern region, South-West Victoria and South Australia to only receive an additional 15 cents/kgMS.

The prices apply to those who have or elect to enter into an exclusive Milk Supply Agreement as published on SDA’s website.

Saputo Director of Milk Supply and Planning, Kate Ryan indicated in a letter to its milk suppliers about the step up, that it will continue to review its milk prices throughout the season.

“We value our ongoing partnerships with our farmers and remain committed to fostering a sustainable dairy industry,” she stated.

Burra Foods price step up is more straightforward, with its initial price range of $8.60 - $9.10/kgMS improving to $8.80 - $9.30/kgMS.

Burra CEO Stewart Carson explained in his letter to suppliers that the company’s sales team has been busy engaging with customers to negotiate prices for the second half of the year and the leadership team has now reviewed the outcome of the market visits.

Sales price and volume, production output and costs and the overall impact on Burra’s financial forecast have been considered, with the determination made that a price step up is justified.