2023-24 milk battle: Saputo, Bega and Fonterra tied on price

The opening figure from Lactalis is more than $2/kgMS lower than its rival in some northern regions, which farm lobby leaders claim is below the cost of production.

EastAUSmilk president Matt Trace said the “low-ball figure” from Lactalis had sent shockwaves through the NSW and Queensland dairy sector.

He said Norco had provided confidence with their opening prices compared to Lactalis.

“There’s anger in the northern dairy sector like I’ve never seen before,” Mr Trace said. “There’s concern that this low-ball figure has been put out there by Lactalis and that they’re going to engage in special deals with certain suppliers and leave other suppliers out in the cold.

 “I know in Victoria, there’s a culture of step ups, so farmers don’t sweat over the opening price like they do up here. But there isn’t the culture of step ups in NSW and Queensland, so the price you’ve got in July is the one you’re stuck with.”

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Source: Alex Sinnott and Peter Hunt, The Weekly Times, 7 June 2023