Saputo Dairy Australia (SDA) has announced an opening milk price of $8-$8.15 a kilogram milk solids for season 2024-25 - a 12-14 per cent drop on last year's price. It follows Fonterra's announcement of an opening price of Both major processors have announced their opening prices ahead of the June 3 deadline under the mandatory "Our opening milk price factors in ongoing global market volatility due to subdued demand, as well as greater variability in domestic markets and anticipated market returns," SDA director of milk supply and planning Kate Ryan said.
"As we see more market certainty, we would expect to review our prices during the year." Ms Ryan said the company's strong business position "supports us paying a premium above current commodity price returns". "This is due to business efficiencies achieved over recent years, including taken to strengthen our competitiveness, reduce costs and ensure higher utilisation through our facilities," she said.
"As part of SDA's long-term commitment to the Australian dairy sector, we continue to support our farmers' growth and business success with a range of ongoing specialised services and programs, while also investing in our operations, in the industry and in our regional communities." The opening prices are in line Rabobank, in its Australian Dairy Seasonal Outlook 2024, 'Walking a Tightrope', released in May, Report author, RaboResearch senior dairy analyst Michael Harvey said Australian dairy companies found themselves "walkin.
