DAIRY companies have begun announcing their opening minimum farmgate milks price ranges, which is will pay to suppliers at the start of the 2026-27 financial year.
Saputo Dairy Australia (SDA) has announced to suppliers its opening weighted average milk price of $8.80 to $8.90 per kilogram of milk solids (kgMS) for the 2026-27 season.
Lactalis Mainland Dairy, which has taken over the Australian operatons of Fonterra, announced a range of $8.65 to $9.45, while Burra Foods will go higher with $8.90 to $9.40.
Saputo’s milk prices for exclusive supply are available to suppliers in Gippsland, Tasmania, south-west Victoria, South Australia and northern region.
According to SDA, its opening price reflects current market conditions heading into the new season.
Saputo director of milk supply and planning Kate Ryan said SDA remained focused on supporting its diverse supplier base and strengthening farmer partnerships for the long term.
“We have invested in flexible pricing options and expanded partnership programs, including rebates and incentives designed to enhance on-farm profitability, productivity and sustainability,” she said.
“Farmers can tailor their payment structure, incentives and supplier programs to suit their farm profile and support on-farm cash flow.
“We remain cautiously optimistic about improvements in some markets and will review our milk prices during the season as certainty across key markets and product categories improves.”
The milk prices above are a weighted average across SDA’s supply base. Individual farm prices will vary due to a range of factors specific to each farm’s milk profile.
Burra Foods’ announcement was shared with suppliers following a series of recent supplier meetings across Gippsland, where the company discussed seasonal conditions, milk supply, market dynamics and the outlook for the year ahead.
A highlight of the meetings was reflection and discussion by participants on the recent Canada study tour, attended by more than 30 suppliers.
Burra Foods chief executive Stewart Carson said the announced range acknowledged the challenges being faced by milk supply partners, while also reflecting risk and volatility in markets.
“We know many dairy farming businesses are continuing to operate in a challenging environment, and this opening minimum price range is intended to provide a solid starting point for the season ahead,” Mr Carson said.
“Our focus remains on working closely with our milk supply partners, supporting sustainable milk production and building long-term value for farming families and regional communities.”
Burra Foods said it would continue to offer support measures for suppliers, including options designed to assist with farm cashflow and seasonal planning. The company also noted that recent autumn conditions had supported stronger milk volumes, while acknowledging the ongoing pressures facing dairy farmers and the volatility in global dairy markets.
United Dairyfarmers of Victoria president Bernie Free said the organisation was “extremely disappointed” with initial opening milk prices being announced as they were coming at a time when dairy farmers were facing skyrocketing on-farm costs.
“We must see this price stepped up in the coming weeks to ensure the viability of dairy farmers and processors in these turbulent times,” Mr Free said.
“Less milk supply will put pressure on processors, as farmers consider their future moving forward.
“This move by the processors could lead to a downturn in the milk pool, as farmers consider their options.
“This price announcement doesn’t even factor in inflation or any of the costs of global instability.
“Farmers will be considering their options if these prices don’t rise.”
