Drought impacted dairy farmers who supply Saputo are welcoming what’s being described as a significant price step up by the Canadian dairy processor.

It’s increased the average farm gate milk price for southern milk region farmers by twenty cents, to 5-dollars-95 per kilogram of milk solids.

The payment is retrospective, applying to all Saputo, and Warrnambool Cheese and Butter suppliers.

Fonterra is currently completing its monthly review of prices, if there is any change it’ll be announced in the coming weeks.

Rural reporter Eddie Summerfield caught up with United Dairy Farmers of Victoria Vice President Paul Mumford.

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