By Ben Bennett, President, Australian Dairy Farmers
Fresh Australian milk is part of everyday life right across the country.
Australia’s seven dairy farming organisations have united to call for better, fairer pricing.
Milk is poured on breakfast cereal, frothed into coffee and relied on as a nutritious, affordable staple.
But while milk may look cheap and abundant on supermarket shelves, the system that produces it is under increasing strain.
For many years, Australia has seen very low retail milk prices. Remember when supermarkets cut the retail price of milk by 30% overnight, launching their $1/litre milk war?
In fact, Australians enjoy some of the cheapest fresh milk in the developed world.
Previous analysis by The Weekly Times showed consumers in New Zealand were paying $A2.64 for a litre of home brand milk, while prices averaged $A2.20/litre in Canada, $2.44/litre in France and $A2.05/litre in South Africa and $A2.05/litre the US.
Australian consumers might see this as a positive during a cost-of-living crisis, but it masks a growing disconnect between what consumers pay and the price at which farmers can viably produce the milk.
Ever since the launch of dollar-a-litre milk, dairy farmer numbers and production in Australia have been declining.
Dairy farmers are facing sustained and significant cost pressures.
Fuel, fertiliser, feed, energy and freight costs have all increased sharply, often with little warning.
Seasonal variability is adding further uncertainty, and global instability continues to ripple through supply chains.
Unlike many businesses, dairy farmers cannot pass these costs on. They are price‑takers, not price‑setters.
Recent price increases from some processors and retailers are welcome, however they do not flow back to all dairy farmers, and they are only temporary.
That means that despite the increases, most farmers are still not receiving the long‑term pricing certainty they need to invest, plan and continue producing milk.
This is why dairy farmers across Australia are calling for a clear, transparent reset in retail milk pricing.
Prices must genuinely reflect the cost of production and deliver value back through the supply chain – not only to farmers, but to our processors as well.
A modest increase of a minimum of 30 cents per litre, with guaranteed pass-through to farmers, would make a real difference.
Importantly, this increase would keep fresh milk under $2 a litre at the supermarket checkout.
This is not about windfall profits. It is about ensuring the people producing this essential food can afford to keep doing so into the future.
Milk is not just another grocery item. It is a perishable product produced every day, transported every day, and reliant on a tightly balanced system that cannot simply pause and restart on a whim.
When farmers are forced to scale back or exit the industry because prices do not cover costs, the consequences are long‑lasting.
Without correction, Australia risks reduced domestic production and increased reliance on imported dairy products. Once local production capacity is lost, it is extremely difficult, and costly, to rebuild.
As we’ve seen recently in so many aspects of our lives, greater reliance on imports also exposes Australian families to global price shocks, supply disruptions and comes with less certainty about food standards and availability.
This is ultimately a food‑security issue. A viable dairy industry underpins national nutrition, regional jobs and resilience during geopolitical or supply‑chain shocks.
Fair milk pricing today is what keeps Australian dairy on Australian tables tomorrow.
Farmers understand that no part of the supply chain can absorb rising costs alone.
Sustainable milk production requires shared responsibility across retailers, processors and farmers alike.
Any retail price increase must flow transparently through contracts and be reflected consistently across the dairy category, not absorbed before it reaches the farmgate.
That transparency is critical to rebuilding farmer confidence. It also underscores the importance of stronger clarity and compliance under the Dairy Code of Conduct, so pricing signals are meaningful and enforceable rather than discretionary.
The dairy industry does not want to be having this conversation. Farmers would much rather be focused on producing high‑quality food and caring for their land and animals.
This is not about asking consumers to shoulder an unreasonable burden.
It’s asking for a modest, fair increase in milk pricing that spreads the cost across the system, protects households from future shortages and preserves an industry that is essential to Australia’s food security.
Photo by Eduardo Soares on Unsplash