Saputo steps into line at farmgate, breaking an eight-month impasse on prices

First it was Bulla, then Norco, Bega and Burra got in on the act. Now Saputo has finally stepped up at the farmgate after months of pressure from farmers.

Saputo has broken an eight-month farmgate impasse. Picture: Chloe Smith

SAPUTO has become the latest processor to lift its farmgate milk price, with a 10-cent step up for its suppliers.

The move by the Montreal-based processor represents a lift from $6.40/kg milk solids to $6.50/kg milk solids, reflecting the rise announced last month by rivals Bega and Burra.

Today’s move breaks an eight month long impasse at the farmgate by Saputo, with prices seemingly set in stone since the start of the season.

Fonterra is now the only major processor to remain at $6.40/kg milk solids, a figure confirmed before the start of the 2020-21 season in June 2020.

In a letter to farmers today, Saputo supplier relations director Anthony Cook said the step up would result in a 7c step up per kilogram for butterfat and a 14c step up per kilogram for protein.

“This payment is retrospective and will be applied to all qualifying milk supplied under your SDA milk supply agreement from 1 July 2020,” Mr Cook wrote.

“This increases our weighted average farmgate milk price for the 2020-21 season in the southern milk region to $6.50 per kilogram milk solids — up from $6.40 per kilogram milk solids.”

Mr Cook said the recently improved conditions warranted an increase earlier than Saputo’s scheduled April review in order to “support farm cash flow”.

“Looking ahead, our next review of the 2020/21 minimum milk price is scheduled for June 2021,” he said.

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