‘Support payment’ boosts Saputo milk offer

MILK companies have continued to adjust their offerings to suppliers as the dust settles after the statutory opening milk price day on Monday, June 1.

Saputo has joined Lactalis-Mainland Dairy to offer farmers an additional “support payment” for the upcoming season which will see their effective offer increased from the opening levels of between $8.80 and $9.40.

While the payment has not been laid out in its milk supply agreements, it essentially lifts the company’s weighted average opening price to be on par with Lactalis-Mainland (range $8.65-$9.45) and Bega’s $9.04 offers.

But, according to Leongatha South dairy farmer, Ben Vagg, milk producers had been hoping for something in the area of $9.50 from their companies.

“Something with a ‘9’ is what we were looking for as an opening but we were hoping for $9.50,” said Mr Vagg, a UDV Region 6 Councillor.

“There’s plenty of talk about the risks and variability in the dairy industry but if the companies want a guaranteed supply of milk, they need to be prepared to pay for it.

“Hopefully, we see competition for supply, and we see the price move up from here over the next month.”

That appears to be what we are seeing now from Saputo.