Global Dairy Trade: Index soars as Saputo Australia provides step up

Saputo is the latest processor to step up at the farmgate as a key dairy index gave one of its best performances this season.

Saputo has become the latest processor to provide a second step up to its suppliers, following a string of farmgate fill-ups as farmers look towards the new season.

Australian-based management of Saputo confirmed today it would step up its minimum milk

price by 15 cents to reach a weighted average farmgate milk price of between $8.30 and $8.45 per kilo milk solids.

The refreshed price applies to exclusive supply in Victoria, Tasmania and South Australia.

Saputo milk supply director Kate Ryan said the payment would be made with April proceeds during May and automatically applied to all qualifying milk supplied this season.

“During the current season, we’ve seen continued stabilisation of commodity prices for the start of calendar year 2025,” she said in a letter to suppliers.

“Meanwhile, domestic market challenges persist as cost-of-living pressures impact the local trading environment.

“Consumers remain cost sensitive and value focused.”

Australian Dairy Farmers Corporation, Fonterra and Bega have also provided a secondary price revision in the past month.

All dairy processors nationwide are required to list their minimum opening prices as part of the federal government’s mandatory dairy code of conduct.

Dairy figures including Rabobank analyst Michael Harvey have tipped farmgate prices in Victoria to be $9 per kilo milk solids or above this coming season as international demand for dairy rises.

“As we look to the 2025/26 season ahead, the outlook for domestic and global demand remains uncertain and volatile, with geopolitical tensions and inflationary pressures still impacting purchasing activity.,” Ms Ryan told Saputo suppliers.

The Saputo announcement comes as the headline figure in this week’s Global Dairy Trade trading session posted a sizeable gain of 4.6 per cent to reach $US4516 ($A6958) per tonne.

The whole milk powder category rose even further with an 6.2 per cent gain to $US4374 ($A6739) per tonne while the cheddar category clocked up one of the biggest increases, up 12 per cent to an average of $US5519 ($A8503) per tonne.