Saputo and Burra Foods both revise ‘opening’ prices

SAPUTO Dairy Australia has just advised its suppliers of yet another increase in the “opening price” for milk, as processors battle for supply, now up to $9.40 per kg milk solids, as of Wednesday, June 29, 2020.

And following quickly behind is the locally-based Burra Foods, revising its price again in a range of $9.10 to $9.50kgMS, an increase of 30c/kgMS.

More details on Burra arrangements later today.

Saputo issued its revised price notice to suppliers and to the market on Wednesday morning.

“This is an increase of 21 cents per kilogram of butterfat and 42 cents per kilogram of protein,” said Saputo on June 29.

“Our exclusive minimum price has been increased by the same rates.

“Our revised opening minimum milk prices are reflected in the Milk Supply Agreements published on our website.

“The non-exclusive minimum price is the price we will pay monthly to suppliers for nonexclusive supply of premium quality milk in each of the Northern Region, South-West Victoria and South Australia region, Gippsland region and Tasmania (including King Island).”

Exclusive milk supply agreements are being negotiated with suppliers in Saputo’s Northern and South-West regions of Victoria and also South Australia region.

Saputo was out on the front foot in the South Gippsland area, on Wednesday, June 22 in Leongatha, providing all the first-hand information on the season ahead for local farmers so locally, at least, this latest increase will not be a complete surprise and comes well informed of the conditions for both suppliers and the processor.