Saputo opens at $5.75kg/MS

By Stephen Cooke

Saputo Dairy Australia has announced an opening average milk price of $5.75 per kilogram of milk solids for the 2018/19 season.

The Canadian company, which purchased Murray Goulburn this year, has not announced a forecast closing price as processors traditionally have.

In a letter to suppliers, Saputo wrote that the opening price “represents our current assessment of expected market conditions for the coming year. We believe it is responsible and allows room for upward movements if improved market conditions are realised throughout the year.”

It added: “We are pleased to report that market conditions have continued to improve in recent months.”

The company wrote that its closing average price for the 2018/19 season would depen on the “many external factors that impact our returns”.

“We will monitor market conditions as the season unfolds and update you as part of our quarterly milk price review process in October, January, April and June.”