Australian dairy farmgate prices 2024/25: Early offers unlikely

Dairy farmers are hoping for prices of at least $9/kgMS next season, but Saputo and Bega are refusing to be drawn on the issue.

Saputo and Bega are refusing to be drawn on opening prices for the coming season, but a smaller national milk pool is likely to force their hands.

This week, the headline figure in the latest Global Dairy Trade session fell 2.3 per cent midweek to sit at $US3630 ($A5586) per tonne.

The GDT fall ended a three month-long uplift on international dairy markets, with a pricing gap between the Australian and New Zealand farmgate unusally wide.

Fonterra Australia farm source director Matt Watt said international conditions for dairy remained volatile.

“It’s always good to see improvement in global dairy prices, although there is still some volatility as we saw in this week’s Global Dairy Trade event,” he said.

“There’s still a lot to play out between now and June, and as always, our farmers will be the first to hear from us on the milk price for the coming season.

“In the meantime, we continue to work with our farmers to scenario plan to ensure they’re as prepared as possible across a range of settings.”

Bega and Saputo were approached by The Weekly Times to provide indicative farmgate figures, but did not respond.

Bulla has been a price leader against its larger rivals in successive seasonal cycles.

In March 2022, the Colac factory was the first processor out of the 2022-23 starting blocks, confirming an opening price of $7.40 to $8.00 per kilo milk solids.

Bulla took the same approach ahead of the 2023-24 season, giving what general manager Rohan Davies described as “a starting position” of $8.80 to $9.60 per kilo of milk solids ahead of its competition in May 2023.

Saputo boss Lino Saputo Jr.

In this cycle, Bulla chief executive Allan Hood said the processor would aim to put forward a competitive price but did not nominate a date for the big reveal.

“Our team is still planning for the upcoming dairy season,” Mr Hood said.

“The increasingly challenging domestic trading environment will be a consideration for the industry as a whole this season.

“The needs of our valued farmers’ businesses and supporting the longevity and reciprocity of our farmer partnerships are at the forefront of our planning, as always.”

United Dairyfarmers of Victoria president Bernie Free said opening prices for 2024-25 “needed to have a nine in front of it”.

“The processors only have themselves to blame for higher prices,” Mr Free said.

“Many farmers left the dairy industry as a result of the clawback and several years of low pricing. That shrunk the milk pool and with low supply came higher prices.

“The mandatory code of conduct means the processors still nominate their prices — what they lock in at May and June, they have to take responsibility for.”

Norco has been a farmgate leader with prices of more than $11 per kilo milk solids paid this season but a spokeswoman said they were yet to confirm 2024-24 season pricing.

“Norco is not in a position to comment on its FY25 farmgate milk pricing plans at this point in time, but will release relevant information in due course,” she said.