Saputo Dairy Australia has announced a higher opening milk price of $8.80 to $8.95 per kgMS for the 2025-26 season, leading the competition in Australia’s dairy industry. The move comes amid rising production costs and drought conditions in Victoria. While other processors like Fonterra and Burra Foods have announced lower or more variable pricing, Saputo’s flexible support offerings position it as a strong partner for farmers navigating ongoing economic pressures.
Saputo Dairy Australia (SDA), one of the country’s leading dairy processors, has set an aggressive tone for the 2025–26 season by announcing an opening weighted average milk price of $8.80 to $8.95 per kilogram of milk solids (kgMS). This price exceeds offers from major competitors like Fonterra ($8.60/kgMS) and Burra Foods ($8.60–$9.10/kgMS), solidifying Saputo’s market leadership amid uncertain industry conditions.
The announcement comes at a time when dairy farmers in Victoria, the heartland of Australia’s milk production, are struggling with prolonged dry weather and increasing input costs. Dairy Farmers Victoria President Mark Billing has criticized competitor pricing, especially from Fonterra, as insufficient to support producers under the current financial strain.
Billing urged all processors to align pricing strategies with actual production costs rather than rely solely on market-driven benchmarks. He stressed the need for more reliable and sustainable rates to keep farmers viable during an ongoing rural crisis.
In contrast, David Breckenridge, Managing Director of Fonterra Oceania, pointed to recent global dairy price gains and strong export demand from Australia as encouraging trends. However, processors remain under pressure to translate those positives into better farmgate pricing.
To support its supplier base, Saputo Dairy Australia offers flexible payment options, tailored business support programs, and sustainability-focused incentives. These tools aim to stabilize farm operations, manage cash flow, and improve long-term viability.
Kate Ryan, Director of Milk Supply and Planning at SDA, highlighted the company’s commitment to growth despite macroeconomic challenges. “We’re optimistic about the future and want to ensure our suppliers are well-positioned to succeed,” she said.
SDA’s proactive pricing strategy and support packages send a strong signal to dairy farmers seeking both financial stability and long-term partnerships. As competitors reconsider their approaches, Saputo’s move could shift industry expectations for the 2025-26 season.
