Major players on Australian dairy opening prices 2022/23
Bulla was first out of the starting blocks — but how and when will the big dairy players jump into the supply race.
Australian dairy’s big players — Saputo, Fonterra and Bega — are under pressure to reveal their opening prices after Bulla fired the starting pistol last week.
Bulla gave the first estimation of 2022-23 pricing, revealing an opening price of $7.40 to $8.00 per kilo milk solids to kick off the new season.
In one of the earliest opening price announcements in living memory, Bulla’s dairy general manager Rohan Davies confirmed four opening price figures as the scramble for supply becomes ever more competitive.
The Colac-based processor last year opened with a $6.40 to $6.90 a kilo milk solids range in mid-April, setting off a bidding frenzy from bigger processors such as Saputo, Fonterra and Bega as well as smaller players.
Mr Davies told The Weekly Times that announcing the opening price in March gave suppliers greater certainty in planning their financial year ahead.
Fonterra Australia managing director Rene Dedoncker said the processor planned to announce its price earlier than the June 1 deadline, stipulated by the Federal Government’s mandatory dairy code of conduct.
“Last year, we responded to farmers when they requested that we give them an early line of sight and (we announced) about mid-May,” he said.
“We’re yet to be precise on the timing for this year but what we’ve talked with our farmers about is that they need an opportunity to plan.
“So we’ll give them an early line of sight, so they can plan for the year ahead.”
Saputo and Bega have been contacted by The Weekly Times for comment.