The country’s peak dairy farmer representative body says today’s news that Lactalis’s Longwarry processing plant will close reflects the mounting pressures facing Australia’s dairy industry.

Australian Dairy Farmers (ADF) President Ben Bennett said the news was first and foremost about people, acknowledging the pain this decision will cause workers, their families and the local businesses that rely on the site.

“It will take time for the employees, their families and the Longwarry community to come to terms with today’s decision,” Mr Bennett said.

“While this is a commercial decision by Lactalis, it is another reminder that Australia’s dairy industry is operating in an increasingly challenging environment.”

During the ACCC’s assessment of Lactalis’s acquisition of Fonterra, ADF raised concerns about increasing consolidation across the dairy industry and the importance of maintaining strong competition and regional processing facilities.

“Today’s decision reinforces why competition and processing capacity matter. Every factory that closes undermines dairy communities and makes the industry that little bit smaller.

“Governments cannot keep saying they support food security, sovereign manufacturing and stronger regional communities while making it harder and more expensive to make food in this country.

“Rising energy prices, increasing regulation, growing compliance obligations, escalating input costs and trade settings that expose Australian producers to heavily subsidised imports are steadily eroding  Australia’s dairy industry.” 

Mr Bennett said the dairy industry needs governments to stop adding costs and start backing Australian dairy.

“Unless these underlying issues are addressed, Australia will continue to lose investment, dairy factories, jobs and, ultimately, dairy farms.

“No one wants to see more factories close or more dairy farms disappear from regional Australia. We need policies that strengthen the competitiveness of Australia’s dairy industry before more communities feel the impact. “Today it’s one factory, but this should concern every Australian who wants to keep seeing fresh Australian dairy products on supermarket shelves and in their fridges.”

Australian Dairy Farmers (ADF) has highlighted lessons for Australia in the European Union’s (EU) prioritisation of livestock industries, recognising the role they play in underpinning nutritional food security, regional communities and economic resilience.

The EU last week launched its new Livestock Strategy, which reflects a growing international recognition that livestock industries are essential to food security, regional communities and economic resilience.

ADF President Ben Bennett said the strategy struck an important balance between sustainability and farm viability.

“It’s encouraging to see one of the world’s largest economic blocs revert from the recent pattern of treating livestock production as primarily an emissions problem to a recognition that it is a strategic asset that underpins food security, regional jobs and economic resilience,” Mr Bennett said.

“Profitable farming businesses are the foundation of sustainable agriculture. Farmers can only continue investing in animal welfare, environmental stewardship and productivity improvements if their businesses remain valued and viable.”

The EU strategy focuses on five priorities that support farmers through innovation, animal health, climate resilience, risk management and competitiveness, while maintaining high standards for sustainability, animal welfare and traceability. The priorities are:

1. A resilient livestock sector prepared for crisis
2. A competitive livestock sector – in the EU and globally
3. A sustainable livestock sector
4. A livestock sector fit for all farms and regions
5. Excellence in livestock production

It also places renewed emphasis on food security and strengthening domestic agricultural production and communities.

Mr Bennett said many of the themes echoed ADF’s own advocacy priorities.

“The geopolitical roller coaster of recent years has highlighted the importance of resilient domestic food production and strong regional industries,” Mr Bennett said.

“The strategy reinforces ADF’s longstanding position that productive, profitable and sustainable livestock industries are fundamental to delivering food security, regional jobs and long-term environmental outcomes.

“The Federal Government needs to take a good hard look at what the EU has done and commit to protecting Australia’s own livestock industries and farming communities, as well as ensuring the longevity of our world-class dairy industry. 

Mr Bennett said the strategy also highlighted the need for Australia to remain competitive in international markets. “Consumers and governments are continuing to demand higher standards across food production systems,” he said. “Australian dairy farmers are well placed to meet those expectations, but we must have the Federal Government investment and policy to continue improving our productivity, sustainability and innovation to remain globally competitive.”

The sale of Tasmania’s largest dairy property to a foreign-backed investment fund exposes the contradiction between the Federal Government’s food security policy and carbon offset policies.

That’s the view of Australian Dairy Farmers (ADF) – the peak representative body for Australia’s dairy farmers – which has joined TasFarmers in calling out productive farmland being taken out of food production while major emitters continue purchasing offsets rather than reducing their own emissions.

ADF President Ben Bennett said the government had sent a disturbing message to Australia’s farmers by approving the Rushy Lagoon sale – that it values emissions offsets and carbon credits more than the ability to produce fresh Australian food.

“The easiest way to reduce emissions cannot simply be buying productive farmland and planting trees,” Mr Bennett said.

“Planting trees has a role to play, but it should not become a way for major emitters to keep polluting while productive Australian dairy and agricultural land disappears.”

Rushy Lagoon has for decades been a major dairy, beef and cropping enterprise, supporting Tasmania’s regional jobs, food production and local communities. The approved sale will see much of the property transition to forestry and carbon-related investment, despite widespread concerns raised by TasFarmers and the Tasmanian community.

Mr Bennett said the Federal Government cannot continue talking about strengthening Australia’s food security while approving policies that reduce Australia’s capacity to produce food.

“Australia has already lost thousands of dairy farms over recent decades.

“Every major dairy property removed from production places more pressure on processors, regional communities, food manufacturing and ultimately Australia’s food security.

“Once productive farming land is lost, it is incredibly difficult to bring it back.”

ADF said governments should be asking whether carbon policies are delivering genuine emissions reductions or simply shifting responsibility away from large industrial emitters.

“If the easiest option for large emitters is to buy offsets generated by a forestry investment fund that’s converting productive Tasmanian farmland into carbon projects, then the policy settings are wrong.

“Tasmanian farmers should not be expected to sacrifice food production so other sectors can delay investing in cleaner technology.”

Mr Bennett said Australia needed climate policy that delivers both emissions reduction and food production.

“The government must immediately overturn this decision and review policies that are removing productive farmland from food production. “Australian farmers produce food, fibre and environmental outcomes every day. Public policy should be helping them stay on the land – not selling it from under them.”

Australian Dairy Farmers (ADF) says this week’s ACCC action against Lactalis Australia should serve as a warning to the dairy industry, highlighting the importance of consumer trust and the growing pressures facing Australian dairy farmers.

Lactalis Australia has paid $59,400 in penalties after the ACCC issued three infringement notices alleging two milk products were marketed as “fresh” despite containing substantial amounts of powdered, reconstituted ingredients.

ADF President Ben Bennett said consumers deserve complete confidence in Australian dairy.

“Australian consumers have a right to know what they are buying, and Australian dairy farmers deserve a marketplace built on honesty and trust.

“While we welcome the ACCC’s action, let’s face it – a $59,400 penalty is nothing for one of the world’s largest dairy companies. It sends a message, but it needs to change behaviour.”

Mr Bennett said the case was about much more than product labelling.

“The broader concern is what this says about what happens when Australian dairy farming is continually squeezed.

“We continue to lose dairy farmers and local milk production. Western Australia now has fewer than 100 dairy farmers, and similar pressures are being felt in dairy regions across the country.”

He said when Australian milk production declines, processors have fewer local options which creates a greater reliance on substitute ingredients and imported products.

“When you don’t value Australian milk, eventually you have to replace it. Whether that’s imported dairy products or powdered ingredients, it’s not what Australian consumers expect when they buy fresh milk.”

Mr Bennett says maintaining consumer confidence should be a priority for the entire dairy supply chain.

“For decades Australian dairy farmers have worked hard to build a reputation for producing safe, high-quality dairy products that consumers trust. Incidents like this risk damaging the reputation of an industry that has earned its place in every Australian fridge.”

And maintaining that trust is a shared responsibility across the dairy supply chain, he said.

“Processors, retailers and regulators all have a responsibility to protect that trust by ensuring products are accurately marketed and consumers get exactly what they are paying for.

“Australia is already losing dairy farmers and local milk production. At the same time, Australia is considering trade arrangements that could increase access for imported dairy products.”

He said that makes it even more important that consumers have confidence in knowing they are buying Australian products off supermarket shelves.

“The solution isn’t greater reliance on imported ingredients or substitute products. It’s ensuring dairy farmers are paid fairly and supported to keep producing the fresh Australian milk consumers want. That is how we protect consumer confidence and the future of Australia’s dairy industry.”

Australian Dairy Farmers (ADF) is again pushing for greater transparency in milk pricing, as dairy farmers across the country approach the end of June and the deadline to finalise Milk Supply Agreements for the 2026–27 season.

With many farmers now locked into critical business decisions, ADF says ongoing complexity and inconsistency in processor pricing announcements continues to make it difficult to assess true milk value and plan with confidence.

ADF President Ben Bennett said the current environment highlights longstanding concerns about transparency in milk pricing – one of the key principles underpinning the Dairy Code of Conduct.

“This is perhaps the most important commercial decision farmers make each year, yet many are still being asked to sign contracts without a clear, comparable understanding of what they’re being paid,” Mr Bennett said.

“We’re continuing to see increasingly complex pricing structures stacked with incentive payments and disincentives, making it difficult for farmers to determine whether they’ll actually be able to balance skyrocketing input costs and break even in the new financial year.”

Mr Bennett said ADF had consistently raised the need for clearer, more transparent pricing mechanisms throughout the Dairy Code of Conduct review process, but little progress had been made in addressing these issues.

“We have been raising this issue for years, and the offerings we’ve seen from processors this season reinforces why stronger transparency measures are needed,” he said.

While the Dairy Code of Conduct was designed to improve fairness and reduce information asymmetry in the market, and progress has been made, ADF says the experience this year demonstrates that these objectives are not yet being fully realised in practice.

“Transparency isn’t a ‘nice to have’ – it’s fundamental to a fair and functioning market,” Mr Bennett said. “It’s akin to asking everyday Australians to commit to taking a new 12-month job without knowing what their hourly rate will be.”

ADF is calling on processors and regulators, including the ACCC, to closely examine current milk pricing practices and ensure they align with the intent of the Code.

As the contracting period concludes, ADF emphasised that improving pricing transparency will be critical to strengthening confidence in the market and supporting the long-term sustainability of Australian dairy farming.

“Given this complexity, it’s critical farmers seek independent qualitied advice and, if possible, compare offers from multiple processors,” Mr Bennett said.

An increasing array of opaque sign-on bonuses, loyalty payments, seasonal bonuses and other adjustments are making it difficult for Australia’s dairy farmers to accurately compare opening price offers.

Australian Dairy Farmers (ADF), the peak representative body for dairy farmers, said the lack of clarity in opening milk prices will make it difficult to determine accurate financial projections for the coming season.

Under the Dairy Code of Conduct, Australia’s dairy processors must announce their minimum milk prices for the coming financial year on June 1, and all dairy farmers must have an agreement signed with a processor by the end of the month.

“This season, it’s harder than ever for dairy farmers to compare competing offers,” ADF president Ben Bennett said.

He said they are increasingly being asked to compare milk supply agreements that resemble a sales promotion rather than a straightforward commercial offer.

“At times it feels less like comparing milk prices and more like one of those old advertisements – ‘sign up now and get a free set of steak knives’.

“Processors are trumpeting support packages, loyalty bonuses, war-related cost support payments and special incentives from the rooftops, all while avoiding the one figure farmers actually need to know – what is the genuine base milk price being offered?”

Mr Bennett said the growing complexity of milk price packages offered by processors is creating significant confusion for farmers attempting to make one of the most important commercial decisions for their business.

“The reality is that many farmers are still questioning whether the underlying price being offered covers their cost of production.

“A headline price means very little if it can only be achieved through a maze of conditions, incentives, volume requirements, quality payments and regional adjustments.

“Dairy farmers should endeavour to get multiple income estimates and seek independent advice, to ensure they know where their individual milk price sits next financial year.”

ADF said the situation has become so complicated that even industry efforts to provide independent comparisons are becoming increasingly difficult.

“We developed a milk price comparison tool to help farmers make informed decisions, but the sheer complexity and inconsistency of some processor announcements means even we are spending significant time trying to determine what is actually being offered,” Mr Bennett said.

Mr Bennett said farmers deserve the same transparency standards already applied across many other sectors of the economy.

He said the trend appears to be a deliberate move away from direct price comparison.

“This isn’t happening by accident. Whether intentional or not, the outcome is the same – farmers cannot compare competing offers on a like-for-like basis.

“A dairy farmer must be able to sleep at night without worrying what they are going to get paid.”

Mr Bennett said ADF has repeatedly called for greater milk price transparency throughout the Dairy Code of Conduct review process.

“We have been raising this issue for years,” Mr Bennett said.

“Unfortunately, stronger transparency measures were not adopted during in the Dairy Code Review recommendations, and what we’re seeing now is exactly why those reforms were needed.”

ADF said it hoped the Australian Competition and Consumer Commission (ACCC) would be paying close attention to the growing complexity of processor pricing announcements.

“The ACCC has consistently highlighted the importance of transparency, informed decision-making and reducing information asymmetry in markets. Those principles should apply equally to dairy farmers.”

With the dairy supply chain reeling from climatic, geopolitical and economic pressures, the industry body representing Australia’s dairy farmers has described newly-announced milk prices for the coming financial year as a “conservative floor”.

Under the Dairy Code of Conduct, Australia’s dairy processors had a deadline of 2pm yesterday to announce the minimum prices they will pay to dairy farmers in the new financial year.

Australian Dairy Farmers (ADF) said the prices were a welcome starting point, as farmers and processors now have the rest of the month to sign agreements.

“As an opening price, this is a conservative floor, given the environment we’re operating in,” ADF President Ben Bennett said.

“It gives farmers something to work with as we head into what is traditionally a very busy time negotiating and looking for competitive uplift prior to the end of the month.”

Mr Bennett said it was important to recognise the pressures facing all parts of the dairy supply chain, not just farmers.

“Processors are hurting too,” he said. “We’re operating in a tight global environment and everyone in the supply chain needs to get a return.

“There’s no fat in the system at the moment.”

Mr Bennett said global and domestic conditions were continuing to shape the market, including ongoing uncertainty linked to conflict in the Middle East, which is contributing to volatility in key input costs such as fuel, fertiliser and freight.

“At the same time, international commodity markets and the Australian-US exchange rate are playing a significant role in underpinning farmgate pricing,” he said.

“Under those circumstances, we’re in a relatively sober position.”

Mr Bennett said seasonal conditions were also front of mind, with forecasts suggesting a strong El Niño could develop this year.

“That creates a level of trepidation across many dairy regions as farmers look ahead to the middle of the season,” he said.

“There’s a lot of uncertainty, and not a lot of comfort in the outlook right now.”

Mr Bennett said farmers would now turn their focus to negotiations and making practical business decisions based on the opening prices.

“We’ve got to make the best decisions for our businesses with what we’ve got in front of us,” he said.

“Farmers will sit down, look at their cost structures and make sensible calls about production, investment and staffing for the year ahead.”

He said persistent cost pressures could impact milk production, with some potential for contraction if conditions tighten further.

“We know input costs remain high, and that will continue to influence production decisions on farm,” he said. “That’s something the whole industry is watching closely.”

Australian Dairy Farmers (ADF) has reiterated calls for the renewable energy rollout to adequately protect productive farmland, as the Victorian Government today confirms locations for its Renewable Energy Zones (REZ).

ADF President Ben Bennett said while dairy farmers are committed to playing their part in the transition to a lower-emissions economy, the shift must be designed in a way that also protects the productive farming systems that underpin food security.

“The concern for dairy farmers is whether the scale and location of energy infrastructure is being planned in a way that protects long-term food production,” Mr Bennett said.

“The Victorian Government’s declared REZs substantially overlap productive agricultural landscapes, including important dairy farming regions that are a finite and strategically important national resource.”

Victoria’s REZ announcement is reported to cover approximately 1.8 million hectares, or almost eight per cent of the state’s land area, including regions that support significant dairy, grazing and mixed farming production.

Mr Bennett said dairy farming was only possible in a relatively small number of regions across Australia, requiring a combination of reliable rainfall, suitable soils, temperate climate and water access.

“Dairy country is not easily replaced,” he said.

“Australia already has comparatively limited areas capable of supporting intensive food production systems such as dairy, and Victoria accounts for around two-thirds of the nation’s milk production.

“Once productive farming systems are fragmented or permanently changed, rebuilding that productive capacity elsewhere is extremely difficult.”

Mr Bennett said the issue of protecting Australia’s food-producing capacity had become increasingly important, as evidenced by the Federal Parliament’s Food Security Inquiry and the Commonwealth Government’s current Feeding Australia National Food Security Strategy.

“At a time when governments are rightly focused on food security and supply chain resilience, we should be asking whether we are adequately protecting the productive land that underpins our domestic food supply,” he said.

ADF said farmers had consistently raised concerns throughout the REZ consultation process regarding the cumulative impact of transmission easements, substations, access roads and energy infrastructure on highly productive farming systems.

“Dairy farms are highly integrated operations,” Mr Bennett said.

“The cumulative impact of transmission infrastructure can affect farm layouts, laneways, irrigation systems, water access, herd movement, biosecurity and operational efficiency across entire farming regions.”

Mr Bennett said climate and emissions policy should be implemented in a manner consistent with food production, not at its expense.

“The Paris Agreement itself recognises climate action should occur in a manner that does not threaten food production,” he said.

“No one is arguing against the need to reduce emissions. But the pathway matters.

“Food security and energy security must go hand in hand.

“The challenge for governments is ensuring emissions reduction occurs in a way that protects highly productive agricultural land and does not unintentionally compromise Australia’s long-term food production capability.”

Photo by Tim Foster on Unsplash

Australia’s dairy farmer representative body has raised serious concerns about national agricultural policy capability, with Tuesday’s Federal Budget continuing to hollow out the Department of Agriculture, Fisheries and Forestry’s (DAFF) resources.

Australian Dairy Farmers (ADF) says a strong agricultural department is critical not only for biosecurity and trade access, but also for ensuring practical agricultural knowledge informs broader economic, climate, water and industry policy.

ADF President Ben Bennett said recent fuel and fertiliser disruptions driven by global conflict highlighted the importance of maintaining strong agricultural policy capability within DAFF.

“During this period of international instability, agriculture is one of the first sectors exposed through fuel availability, fertiliser supply and freight disruption,” Mr Bennett said.

“The work undertaken by DAFF and agricultural policy specialists has been critical in helping government understand the real impacts on food production, regional economies and national supply chains.”

ADF has serious concerns about the continued hollowing out of agricultural policy capability and support within government, warning the 2026–27 Federal Budget continues a long-term trend of hollowing out DAFF and weakening agriculture’s influence in national economic and policy decisions.

The Budget includes an Agriculture, Fisheries and Forestry portfolio “reprioritisation”, delivering $191.6 million in savings over five years.

The savings include:

• $104.6 million removed from uncommitted grant funding across several agriculture programs, including:
  • Pest and Disease Preparedness and Response
  • Agriculture and Land Sectors – low emissions future
  • Support for Regional Trade Events
  • Seaweed farming development
  • Various trade-related grant programs; and
• $52 million removed from the Future Drought Fund over four years, with an ongoing reduction of $13 million per year.

Mr Bennett noted an ongoing erosion of the broader policy and industry capability needed to ensure agriculture’s voice is properly represented in central government decision-making, including within Treasury and whole-of-government economic policy.

“The reductions continue a concerning trend of removing agriculture from a seat at the table,” he said.

“At a time when food security, biosecurity, trade disruption and regional resilience should be front and centre, we continue to see agricultural capability and support reduced, consolidated or redirected.

“Additionally, too often, funding originally intended to strengthen agriculture and regional resilience is gradually redirected elsewhere, leaving less direct support reaching farmers and agricultural industries.”

ADF warned ongoing reductions and restructures risk driving experienced agricultural and technical specialists out of government entirely.

“Chipping away at agricultural capability risks losing highly experienced people and institutional knowledge that is incredibly difficult to rebuild,” Mr Bennett said.

“Farmers are increasingly concerned that decisions affecting agriculture are being shaped without enough agricultural expertise.”

ADF said targeted frontline investments should not disguise the broader decline in agricultural policy and program capability occurring across government.

“Australia cannot afford to weaken the institutional capability that underpins one of the country’s most strategically important industries,” Mr Bennett said.

“Food security, regional jobs, export earnings and sovereign manufacturing capability all depend on maintaining a strong and capable agricultural policy system.”

Australia’s dairy farmer representative body says the Federal Budget provides only indirect support to the sector, ultimately falling short of the targeted assistance needed to stabilise the industry.

Australian Dairy Farmers President Ben Bennett said dairy farmers would welcome practical measures aimed at easing input cost pressures and improving national resilience, however the Budget failed to include any direct dairy support package, despite mounting challenges across many farming regions.

“Dairy farmers are battling prolonged drought and feed shortages, escalating energy, fertiliser and labour costs, water insecurity, increasing regulatory compliance costs, workforce shortages and more, yet we’ve seen little meaningful support in this Budget,” Mr Bennett said.

“We welcome the constructive steps that may provide some assistance to dairy businesses but have not seen the widespread structural support we’d hoped for.”

ADF said stronger ACCC capability and competition enforcement was a positive step, particularly given growing concern about transparency, pricing behaviour and market concentration across the food supply chain.

“The supply chain that ultimately ends at retail is no longer delivering sustainable outcomes for dairy farmers,” Mr Bennett said.

“Farmers are facing increasing costs of production while the market continues to reward scale and buying power over long-term sustainability.

“Greater scrutiny, transparency and enforcement capability is needed to ensure competition laws are working as intended and that farmers are not carrying disproportionate risk within the supply chain.”

However, ADF criticised the lack of any meaningful support measures to offset the impacts of the Australia–European Union Free Trade Agreement (EUFTA), which the industry has consistently warned risks placing additional pressure on Australian dairy farmers without delivering commercially meaningful market access outcomes in return.

“Australian dairy farmers are being exposed to increased import competition and additional trade pressure without corresponding support for domestic production,” Mr Bennett said.

“The Budget contains no meaningful support to help Australian consumers identify and back local dairy products, no domestic dairy promotion package, and no response to the increasing competitive pressure flowing from trade outcomes such as EUFTA.”

“Australian farmers should not be expected to compete against heavily subsidised international production systems while receiving little strategic support at home.”

ADF said dairy farmers continue to support fair trade but warned that trade policy settings must not come at the expense of domestic food production capability.

“Australia cannot afford to hollow out domestic dairy production capacity and become increasingly reliant on imported product,” Mr Bennett said.

“Food security, regional jobs and sovereign manufacturing capability matter.”

ADF also expressed concern about the reduction in agricultural funding and capability through budget reductions to the Department of Agriculture, Fisheries and Forestry (DAFF), while expanding environmental and regulatory frameworks.

“Strong agricultural departments are critical not only for biosecurity and trade access, but also for ensuring practical agricultural knowledge informs broader economic, climate, water and industry policy”.

“Farmers support practical environmental outcomes, but policy settings must remain grounded in production realities and experience to protect Australia’s food security and regional economies. Without this, government risks making decisions that push farmers out,” Mr Bennett said.

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.”

Australian Dairy Farmers (ADF) has welcomed price support moves by a major supermarket and leading dairy processor to temporarily alleviate the input cost pressures hurting Australian dairy farmers.

ADF understands the developments include a retail-linked milk price increase for Woolworths’ own brand milk suppliers and a five cent per litre “farmer support payment” from Lactalis Australia.

ADF President Ben Bennett said while the announcements were positive and a step in the right direction, they each have limitations and do not yet go far enough to address the scale of financial pressure facing dairy farmers.

“These measures are welcome and provide important short-term support, but they do not yet deliver the long-term pricing outcomes all dairy farmers need,” Mr Bennett said.

He said it was critical to recognise that Woolworths’ own brand pricing adjustment applies only to a very small number of farmers supplying into specific contracted milk pools – meaning these benefits will not extend to farmers across most of the market.

“Retail-led increases are often tied to particular supply arrangements, and in this case only a relatively small group of farmers will see a direct benefit,” he said.

ADF also noted that the Lactalis payment, while positive, is a temporary support measure rather than a permanent increase in the farmgate milk price.

“The Lactalis initiative provides valuable short-term relief, but it is not a structural price step-up. Farmers need confidence that improved pricing will be sustained into the future,” Mr Bennett said.

Farmers across Australia continue to face significant increases in input costs, including fuel, fertiliser and feed, placing sustained pressure on farm profitability.

Mr Bennett said there is now a clear need for stronger and more consistent action across the entire supply chain, particularly from retailers through to processors.

“If we are serious about maintaining Australian milk production, retail pricing must better reflect the real cost of producing and processing milk,” he said.

“There is a shared responsibility across processors and retailers to ensure that value is returned through the supply chain in a way that supports farmers.”

ADF is calling for:

• Sustainable farmgate pricing aligned with cost of production;
• Greater transparency in how value flows from retail to farmgate; and
• Stronger and more consistent retail pricing signals to support farmer confidence and investment.

“Short-term support helps, but what farmers ultimately need is long-term pricing certainty and a fair return for the milk they produce.”

ADF will continue to work constructively with processors, retailers and government to achieve a more sustainable future for the dairy sector.