Seven industry groups representing dairy farmers across Australia have today called on supermarkets and processors to ensure the continued supply of fresh dairy products by implementing sustainable increases in retail milk pricing.
The organisations, including Australian Dairy Farmers, New South Wales Farmers’ Dairy Committee, EastAUSmilk, South Australian Dairyfarmers’ Association, TasFarmers, United Dairyfarmers of Victoria, and WAFarmers Dairy, are aligned on the urgent need for prices that reflect the increasing cost of producing milk in Australia.
The state representative groups say that while recent support measures are welcome, they do not reach enough farmers or provide the long-term certainty required to sustain production.
Dairy farmers and processors are battling a range of significant challenges, including rising fuel and fertiliser costs, ongoing seasonal variability, flat retail pricing, and increasing global uncertainty.
The state groups say retailers must give a transparent and sustainable pricing signal that flows through to processors and farmers.
“Australian consumers currently enjoy some of the cheapest fresh milk in the developed world, but our farmers are facing some of the highest production costs,” Australian Dairy Farmers President Ben Bennett said.
“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.
“A modest increase in retail milk pricing would help ensure farms remain viable and continue producing this essential, nutrient-rich food, but only if that value is passed back through the supply chain.”
New South Wales Farmers Dairy Committee Chair Malcolm Holm said the current situation is not sustainable, without structural change.
“Farmers are price-takers. We don’t control the price we receive, yet we are carrying the burden of rising costs,” Mr Holm said.
South Australian Dairyfarmers’ Association President Robert Brokenshire said while recent initiatives from individual companies are a step in the right direction, they are not enough.
“Some of the increases we’ve seen are limited to specific supply pools, and others are temporary. They simply don’t provide the long-term certainty farmers need,” Mr Brokenshire said.
EastAUSmilk Chair Tim Bale said sustainable pricing is critical to maintaining supply.
“Dairy farmers in Queensland and New South Wales are highly dependent on the local fresh milk market and highly impacted by processor contracts with the major supermarkets,” Mr Bale said.
“A significant lift in the retail milk price is long overdue. Farmers understand the farmgate prices can’t keep increasing without a shared margin for all sectors.”
United Dairyfarmers of Victoria President Bernie Free said fair pricing is essential to maintaining a strong domestic dairy sector.
“This is about ensuring Australian families continue to have access to fresh, locally produced milk and dairy products,” Mr Free said.
WAFarmers Dairy Section President Ian Noakes said the industry must address the growing cost-price squeeze.
“Input costs continue to rise, but farmgate prices are not keeping pace. Without change, the pressure on farmers will only intensify,” Mr Noakes said.
TasFarmers Dairy Council Chair Andrew Aldridge said a unified national approach is critical.
“Cost pressures are being felt by farmers supplying all manufacturing streams, not just retail, and this conversation must extend to foodservice and export‑focused sectors, so those producers are not left behind,” Mr Aldridge said.
“As costs rise, we must be agile in how we set prices because if increases are not shared across the entire supply chain, the industry won’t be able to sustain ongoing cost growth.”
Australian Dairy Farmers and its state members are calling for:
- A transparent retail milk price increase of approximately 30 cents per litre;
- Guaranteed pass-through of value through processors to farmers; and
- Stronger clarity and compliance under the Dairy Code of Conduct.
Mr Bennett said milk remains a staple product in Australian households and a cornerstone of the national food system.
“Milk is an essential, nutrient-rich food used every day by Australian families,” he said. “Fair pricing today is what will ensure Australian dairy remains on Australian tables tomorrow.”