Saputo Dairy Australia (SDA) has revised its 2021/22 opening weighted average farm gate milk price to $6.85 per kilogram milk solids in the Southern Milk Region.

SDA has published revised opening minimum milk prices in a standard non-exclusive Milk Supply Agreement (MSA) for the Southern Milk Region, with minimum prices representing the price paid monthly to suppliers for premium quality milk.

Together, the monthly minimum prices and the additional payments described in SDA’s MSA – being the monthly milk quality bonus, monthly productivity payment, off-peak payment, and monthly Northern Region payment – result in the weighted average farm gate milk price.

"Saputo is committed to paying its suppliers competitive milk prices," the company said.

Dairy processors are required to publish details about the milk supply agreements for the coming financial year on their website, as part of the Dairy Code introduced by the Australian Competition & Consumer Commission (ACCC) in January 2020.

In May, the ACCC said it will continue to be active in enforcing the dairy code this year, particularly when it comes to processors’ requirement to publish dispute reports on time.

More details on the revised MSA from SDA can be found here.


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