Lactalis provides opening prices, Saputo silent ahead of dairy season start
Lactalis is the latest processor to provide its opening prices but one big player is staying silent on the sidelines
Opening prices are edging closer to $9 per kilogram milk solids as competition for suppliers heats up ahead of the mandatory dairy code of conduct deadline next week.
Lactalis is the latest processor to provide its pricing start to the season, with an average weighted price of $8.80 per kg milk solids for northern Victoria.
Under its flat milk payment system, Lactalis is offering $8.65 per kg milk solids to existing and potential suppliers in western Victoria, Gippsland and Tasmania.
Meanwhile, a seasonal price of $8.50 per kg milk solids is being offered as well in western Victoria and Gippsland.
Lactalis national milk supply manager Paul Lorimer did not rule out changes to pricing as the clock ticks down to the June 1 deadline, set out by the federal government’s code of conduct.
“We recognise that milk is in high demand and we will monitor price developments over the coming weeks to ensure we remain competitive,” Mr Lorimer said.
Lactalis recently acquired the Jalna yoghurt brand, which operates a Melbourne processing plant with 90 employees.
“(Jalna) is a great business and a strong brand and (the acquisition) will provide new growth potential. We are seeking additional milk to support this growth,” Mr Lorimer said.
Out of Australia’s big three processors, Saputo is the only major player not to provide an opening price with less than a fortnight to go before the code deadline.
Saputo management have been contacted by The Weekly Times for comment.
Earlier this month, Fonterra opened with an weighted average farmgate milk price of $8.25 per kg milk solids for the 2022-23 season.
Bulla was the first processor out of the 2022-23 starting blocks, confirming in March an opening price of $7.40 to $8.00 per kg milk solids.
Bega was the second processor to join the fray last month with an opening milk price in the range of $8.20 to $8.60 per kg milk solids.