Farmgate milk prices head toward $9/kg of milk solids

Processor competition for Australia’s shrinking milk pool is fierce amid global supply turmoil. See what they’re offering farmers.

Price time: Dairy farmers are weighing up the prices on offer from processors for their milk in 2022-23.

Southeast Australian farmgate milk prices are soaring, with companies already offering $8.80/kg of milk solids for the 2022-23 season and talk of Coles putting $9/kg on the table.

The Australian Dairy Farmers Company today announced an opening price of $8.80/kg of milk solids, while adding a 10 cent step-up to this season’s price to $7.65/kg of milk solids to its existing suppliers.

The Weekly Times understands Coles is offering $9/kg of milk solids for exclusive supply as competition ramps up ahead of all players having to publish full details of their 2022-23 milk supply agreements by June 1, under Australia’s mandatory dairy code.

The Weekly Times is seeking to confirm the price being offered by Coles.

ADFC’s statement to farmers said the new season opening was based on ADFC’s reference standard of 4 per cent fat and 3.2 per cent protein and would be reviewed prior to July 1 “and any improvements, if applicable, will be advised accordingly”.

ADFC’s minimum milk price will be:

$8.40/kg of milk solidsfrom July to December

$9.20/kg of milk solids from January to June

Other dairy processors have announced headline prices, but only Fonterra Australia has released the full details of what’s on offer in its milk supply agreements for 2022-23, based on a weighted average price of $8.25/kgMS.

Headline numbers on offer from other companies include $8.80/kg of milk solids from Lactalis, while Bega has only stated its price would be in the range of $8.20-$8.60/kg of milk solids.

Saputo is yet to announce an opening price.

Source: Milk2Market milk price comparison