WITH the 2024-25 Dairy Farm Monitor Project (DFMP) reporting a considerable drop in income for Victoria’s dairy farmers, including in the Gippsland region, a price step-up announced on Thursday by Saputo Dairy Australia (SDA) appears timely.
It has advised its suppliers of a $0.15 per kgMS increase for exclusive supply in its Southern milk collection regions.
This step-up brings SDA’s weighted average milk price to $9.15 – $9.25 per kgMS in the Southern region, which includes Gippsland, South-West Victoria and South Australia, as well as in the Northern region and Tasmania.
The DFMP reported that net farm income fell from $1.74 per kgMS of milk solids to just 47c per kgMS, with those figures based on top-performing dairy farms across Victoria.
“The average farmer is going backwards,” United Dairy Farmers of Victoria president Bernie Free said.
The Saputo step-up follows Wednesday’s report in The Weekly Times that highlighted growing pressure on major dairy processors to provide a Springtime step-up as drought erodes profit margins across much of southeastern Australia.
Kate Ryan, Director of Milk Supply and Planning, said while SDA continued to navigate variable conditions across global and domestic markets, this step-up reflects recent value realised by the business and its commitment to offer a competitive milk price for its loyal supplier base.
“We appreciate the strong partnerships we’ve built with our farmers and we remain committed to fostering a sustainable dairy industry,” she said.
“In what continues to be a challenging year for farming communities, our team of Field Services, milk quality, agribusiness and feeds experts are also supporting and connecting suppliers with our partnership programs and services that best suit each farm’s unique needs.”
The announced step-up is retrospective and will be automatically applied to all qualifying milk supplied since July 1 by suppliers who entered into an exclusive Milk Supply Agreement for the 2025-26 season, as published on SDA’s website.
The payment will be made to eligible suppliers with their October proceeds during November.
SDA stresses that milk prices achieved at individual farm level will vary based on specific milk supply circumstances and a variety of factors on farm.
