Fonterra and Saputo lift milk prices

Fonterra has lifted its price by 30 cents, taking its revised weighted average Australian milk price to $8.90/kg MS.

The processors announced the step-ups within hours of each other on Friday, June 13, less than two weeks after the deadline under the Dairy Code of Conduct for processors to list their opening prices for the 2025-26 season.

“I am pleased to let you know we are increasing our weighted average Australian milk price for the 2025-26 season by 30 cents/kg MS, comprising 25 cents/kg of butterfat and 35 cents/kg of protein,” Fonterra Oceania managing director David Breckenridge said in his letter to suppliers.

“This price increase takes our weighted average Australian milk price to $8.90/kg MS for the 2025-26 season,” he said.

“Since our opening price announcement three weeks ago, we have secured key customer contracts which provide further clarity and greater confidence in the outlook for the season ahead.

“We appreciate your continued partnership as we near the commencement of the new season.”

Saputo Dairy Australia milk supply and planning director Kate Ryan said SDA had listened to its suppliers’ valuable feedback since releasing its opening weighted average milk price.

“We remain committed to offering a competitive milk price for our loyal supplier base and this early step-up reflects a considered position based on market conditions,” Ms Ryan said.

“As always, we will continue to review our milk prices throughout the season.”

Saputo’s step-up is $0.15/kg MS for suppliers in the northern region (northern Victoria and southern NSW), south-west Victoria and South Australia, and $0.20/kg MS for suppliers in Gippsland and Tasmania.

With this adjustment, the weighted average milk price is $9 to $9.10/kg MS for exclusive supply in southern Australia.

New season opening milk prices have been widely condemned by farmers and dairy industry bodies.