2021/22 milk prices open higher

Milk prices have lifted across the board as the major processors filed their opening prices by June 1 under the national Dairy Code of Conduct.

Of the larger companies, Bega Cheese appears to be in front with a volume weighted average opening for southern Victoria and south-east South Australia of $6.80/kg milk solids, and for northern Victoria and the southern Riverina a price of $7/kg MS.

Saputo Dairy Australia is offering $6.55/kg for suppliers in the Southern Milk Region.

Bega executive chairman Barry Irvin said these opening milk prices represented a welcome increase in milk prices from the 2020-21 average price.

Mr Irvin said traditional Bega suppliers were receiving a strong increase in price and Bega’s new Lions Dairy and Drinks suppliers were getting a modest increase, reflecting improving international and stable domestic market returns.

“Depending on supplier size and supply profile, most of our suppliers will receive an opening milk price in the range of $6.50 per kg milk solids to $7.05 per kg milk solids for our southern Victoria and south-east South Australian suppliers, and $6.70 per kg milk solids to $7.15 per kg milk solids for our northern Victoria and Riverina suppliers,” he said.

Saputo Dairy Australia said in addition to the minimum prices in the milk supply agreements, the company would continue additional payments to suppliers, including the monthly milk quality bonus, productivity payment and off-peak payment.

“Together, the minimum prices and additional payments result in the weighted average farm gate milk price,” Saputo said.

“While the code allows prospective step-downs in limited circumstances, SDA has again committed to no price step-downs in any circumstances during the year, which honours our ongoing promise to suppliers.”

See where some processors opened at below.

ProcessorPriceACM$6.85/kg MS, northern suppliers $7/kg MSACM (organic)$8.60/kg MSACM (a2)$7.15/kg MSADFC$7/kg MSSaputo – Southern Milk Region$6.65/kg MSFonterra$6.55 /kg MSBega (southern Victoria and south-east South Australia)$6.80/kg MSBega (Northern Victoria and Riverina)$7/kg MSBulla$6.40 to $6.90/kg MSColes (Victoria)$7.19/kg MSBurra$6.40 to $6.80/kg MSNorco56¢/litre to 58¢/litre, depending on regionKyValley40.7¢/litre (base price)Lactalis Australia (Victoria, southern Riverina and Tasmania)$6.95/kgMS