Saputo Dairy Australia has announced an opening price for next season at $6.80 kg for its southern milk suppliers.
The company said the price reflected improving export market conditions that are expected to continue in the coming year.
There will also be a step up to the farmgate milk price for the 2018/19 season for all Saputo suppliers in the Southern Milk Region, increasing the average price to $6.15 per kilogram milk solids.
The company said it will also introduce a single pricing structure and quality standard for all suppliers in the Southern Milk Region which aims to promote simplicity, transparency and fairness from July 1.
The new pricing structure moves away from individual monthly pricing, with two prices covering August to December and January to July respectively, better enabling suppliers to operate their farms.