Fonterra matches Saputo with 15c milk price rise in southeast Australia
Fonterra has lifted its farmgate milk price despite soft market conditions, matching rival processor Saputo's recent increase.
Fonterra has matched a Saputo step up with a 15 cent farmgate boost for southeastern Australia.
Australian-based management confirmed its weighted average milk price would now sit at $9.05 per kilogram milk solids, a fortnight on from Saputo’s confirmation it would raise its farmgate offering to $9.15-$9.25 per kilogram milk solids in Victoria and Tasmania.
Fonterra Oceania managing director David Breckenridge said while domestic and international market conditions were lacklustre, other factors had determined the farmgate boost.
“Globally, commodities have softened in the past month, and at home, domestic market demand remains flat,” he said.
“Despite this, currency exchange remains favourable for Australian dairy, and we continue to leverage the strength of our manufacturing network and sales channels to deliver value by adapting to market opportunities.
“Our milk collections have exceeded early season forecasts thanks to improving climatic conditions, which has been encouraging to see.
“We also recognise the financial impacts of last year are still being felt on farm, and recovery takes time.”
Norco became the first processor to step up nationwide this season, lifting its offering to 90.37 cents per litre — equating to roughly $12.85 per kilo milk solids.
The dual-pronged farmgate lift by Norco is driven by a 1 cent per litre co-operative premium and an 0.5 cents per litre quality bonus payable from September 2025 for milk that meets specific quality thresholds.
Fonterra was the first processor to announce its 2025-26 opening price, with an average of $8.60 per kilo milk solids confirmed seven days out from the mandatory dairy code deadline before rising to $8.90 by July 1.
Bega has provided an $8.70-$9.20 per kilo milk solids range in Victoria and Lactalis at $9.20 per kilo milk solids.
