Australian Dairy Farmers (ADF) has welcomed the Australian Government’s decision to restore agriculture as a priority for skilled visa processing and renewed its call for the backlog of existing applications to be expedited.

Home Affairs Minister Tony Burke today announced that Ministerial Direction 119 would be updated to include agriculture among priority occupations, recognising the sector’s importance to regional Australia.

The change follows sustained advocacy from ADF and the broader agriculture sector after agricultural visa applicants were pushed to the lowest processing priority under Direction 119. Farmers had already invested heavily in workforce planning, recruitment, and visa sponsorship arrangements.

ADF President Ben Bennett said the decision was a positive step but warned that restoring agriculture to the priority list would mean little without action on the backlog of applications already in the system.

He also noted ADF has significant concerns about changes to the Working Holiday Maker visa program.

He said the Australian Government had accepted what dairy farmers had been saying – agriculture needs access to the right people, with the right skills, at the right time with timely visa processing when local workers cannot be found.

“We provided evidence from dairy farmers, highlighted the impact on regional communities and food security, and made the case that agriculture should not have been pushed to the back of the queue.

“This is a positive and welcome step for dairy farmers, who have been caught in uncertainty through no fault of their own, but there’s more to be done,” Mr Bennett said.

“Changing the priority list is only the first step. Questions remain about the backlog of agricultural visa applications that accumulated after Direction 119 came into effect.

“The backlog did not occur by accident. It was created as a direct consequence of Government policy and now needs to be addressed.

“We need clarity on when the revised processing arrangements will commence, whether existing applications will be automatically reprioritised, how applications will be handled and what processing timeframes farmers can expect.

“There are dairy farmers who have already been left in limbo for months while applications sit in queues. Restoring agriculture to the priority list must be accompanied by a plan to clear that backlog.”

He said proposed changes to the Working Holiday Maker program should mean processing speeds for many primary Working Holiday Maker applications will return to previous levels, but ADF had serious concerns around the introduction of ballots for second and third-year visas.

The second-year ballot will be capped at 45,000 places, compared with around 57,000 people qualifying last year. The third-year ballot will fall to just 5,000 places, compared with around 31,000 people in that group last year.

“That third-year reduction is enormous and should ring alarm bells across regional Australia,” Mr Bennett said.

“We hope the Australian Government will properly consult agriculture on how these ballots will work and what the consequences will be for regional workforce availability before these changes bite.”

Mr Bennett said ADF would continue working constructively with Minister Burke, Minister Collins and Home Affairs on implementation and prompt action to ensure workers can reach dairy farms as quickly as possible.

Woolworths’ billion-dollar profit has raised fresh questions about how Australia’s biggest food retailer backs home-grown dairy, local processors and regional jobs.

Woolworths reported an 18.1 per cent increase in net profit to $1.14 billion for FY26, with its Australian Food segment sales reaching $53.9 billion.

Australian Dairy Farmers President Ben Bennett said Woolworths’ use of imported United States dairy products, including their home-brand cheese, put pressure on home-grown Australian produce, dairy farmers, processors and regional jobs.

“Woolworths has built its brand as the ‘fresh food people’, but it’s putting Woolworths-branded imported cheese into Australian shopping baskets,” Mr Bennett said.

Mr Bennett said the Woolworths case was symptomatic of a broader and worrying trend, with both United States and European imports increasingly appearing on Australian supermarket shelves.

“And some of those products sit in Green and Gold-style packaging, so shoppers aren’t even being given clear information about whether they are buying Australian dairy or imported product.

“Every imported product that replaces Australian dairy takes demand away from local processors and farmers. And that demand supports farms, processing capacity, regional communities and Australia’s food security.”

Mr Bennett said major retailers needed to be clear about what they put on shelves and how those choices affect local production.

“This is not just about shopper choice. It is about retailer responsibility.

“Governments are talking about food security and resilient supply chains, but sourcing decisions like this put more pressure on the farmers and processors who produce food here at home.

“Woolworths and other major supermarkets decide which products get shelf space, and those decisions help determine whether Australia maintains a strong domestic dairy industry.

“Once farms close and processing capacity disappears, it is extremely difficult to rebuild.”

Mr Bennett said Woolworths’ strong profit result made it fair to ask how the retailer supported Australian dairy farmers and local food production.

“Woolworths reported a $1.14 billion profit, while Australian dairy farmers compete with imported home-brand products from much larger overseas markets.

“Australian dairy farmers are not asking for charity. They are asking major retailers to value Australia’s own produce, its own food.

“Woolworths should explain how it will keep Australian dairy farmers and processors in its supply chain while selling Woolworths-branded imported dairy products.”

Months after the Federal Government committed to a national food security strategy, a policy decision by Immigration Minister Tony Burke is eroding Australia’s ability to produce its own dairy foods.

Australian Dairy Farmers (ADF) says Burke’s Ministerial Direction has pushed skilled regional workers down the visa processing queue at the worst possible time for dairy farmers.

Ministerial Direction 119, signed by Minister Burke took effect on 25 July, changed the processing priorities for skilled visas used by dairy farmers, including the 482, 186, 494 and through the Dairy Industry Labour Agreement.

ADF President Ben Bennett said the change removed the previous priority given to employer-sponsored skilled visa applications for regional Australia.

“This was not simply an administrative change. It was a Ministerial Direction. Tony Burke signed it, and it has real consequences for regional employers,” Mr Bennett said.

“Dairy farmers have spent thousands of dollars planning and recruiting skilled workers because they cannot find the people they need locally. They have followed the Government’s rules and used the pathways specifically designed to address regional skills shortages.

“Now, with countless applications already paid for and in the system, the Government has without consultation or warning, changed the rules after the event blowing processing times out further.”

The decision also cuts across the Government’s own 2023 Migration Strategy, which recognised that regional employers struggle to attract workers and committed to giving regional employer-sponsored migration high processing priority.

On 15 May, ADF appeared in front of the Joint Standing Committee for Migration where even that  committee recognised the importance of skilled workers to the dairy industry.

“What makes this particularly frustrating is that Minister Burke knows agriculture,” Mr Bennett said.

“He has previously served as Agriculture Minister and Workplace Relations Minister. He understands regional labour shortages and he understands that dairy farms cannot simply stop operating while they wait for workers.”

ADF and the broader industry was not consulted or given advance warning before the change took effect.

The timing is particularly difficult as many dairy regions move through peak calving and production periods.

“Make no mistake about this dairy farmers’ are furious,” Mr Bennett said.

“When workers are missing, farmers and existing staff carry the load. That means longer hours, more fatigue, greater workplace safety risks and added pressure on animal care and farm productivity.

“Farmers are already carrying significant pressure. Government decisions should be helping regional businesses find workers, not making the process harder and even longer.

“The Prime Minister himself has acknowledged the importance of skilled migration to agriculture just yesterday in Western Australia. That is why this decision by Minister Burke is so difficult to understand.”

ADF is calling on Minister Burke and the Prime Minister to:

• immediately reverse Ministerial Direction 119 or amend it to restore priority processing for agricultural skilled visas; and
• expedite the processing backlog and give farmers some certainty at a time when many are questioning their continued investment in the industry.

“This may be an unintended consequence of a quick decision, but that gives all the more reason to prioritise agriculture and expedite the backlog,” Mr Bennett said.

Australian Dairy Farmers is calling on the Federal Government to urgently reverse a visa processing change that has pushed many skilled dairy workers to the back of the queue at the worst possible time of year.

Ministerial Direction 119 took effect on 25 July, replacing previous arrangements that gave employer-sponsored regional positions high processing priority.

Under this new Direction, most skilled visa applicants outside Australia who are not in defence or law enforcement now sit in the fifth and final processing priority.

Australian Dairy Farmers President Ben Bennett said the change was made without consultation or direct communication with the dairy industry.

“This is not a minor administrative change, as the unintended consequences are significant. The Government has changed the queue after farmers and skilled workers have already paid to get into it,” Mr Bennett said.

“Some dairy farmers have spent up to $12,000 finding, assessing and sponsoring skilled workers because those skills simply cannot be found locally.

“They have paid government fees, made workforce plans and acted in good faith. Now many of those workers who have been waiting for up to 6 months already, have been pushed to the bottom of the pile.”

Mr Bennett said the timing was particularly damaging during spring calving.

“Cows don’t wait for Home Affairs to process a visa.

“If the worker doesn’t arrive, the work falls back on the farmer, their family and existing staff.

“That means longer hours, more fatigue, greater risk of accident, lower productivity and greater food security concerns at one of the busiest times of the year.”

ADF said the decision was particularly difficult to understand given dairy’s growing reliance on skilled migration and ongoing regional workforce shortages.

“Farmers turn to migration because they cannot find the people with the right skills locally,” Mr Bennett said.

“Only three months ago ADF representatives appeared in front of a joint standing committee on migration and outlined how important these workers are.

“Government cannot take money from farmers and visa applicants, recognise there is a genuine skills shortage, and then leave them high and dry.

“Spring calving is happening now. Dairy farmers need skilled workers on farms, not sitting at the bottom of a visa processing queue.

“The government needs to fix this now and immediately change dairy related visas to high priority categories,” Mr Bennett said.

Australia’s peak dairy farmer representative body says Tasmania has seized an opportunity to investigate concerns about the impact government policies and investment settings can have on agricultural land markets.

Australian Dairy Farmers (ADF) has welcomed the Tasmanian Government’s announcement that it would establish a parliamentary inquiry into the sale of Rushy Lagoon, including the influence of Commonwealth funding, the conversion of agricultural land to carbon sequestration and the transparency of the sale process.

ADF President Ben Bennett said the inquiry was an important opportunity to look beyond one property and examine the broader consequences of government policies that could distort agricultural land markets.

“Rushy Lagoon raises serious questions about what happens when taxpayer-backed investment and carbon incentives compete directly with farmers for productive agricultural land,” Mr Bennett said.

“This is not an argument against forestry, carbon projects or private investment. It is about making sure government intervention does not artificially impact land values or give one type of land use an advantage over food production.”

The 22,000-hectare property has been purchased by the UK-based Tasmania Natural Asset Trust, with approximately $69 million of investment from the Commonwealth-owned Clean Energy Finance Corporation. Around 9,000 hectares is proposed for plantation forestry, while the purchaser says agricultural production will continue on other parts of the property.

ADF joins TasFarmers in warning the deal will lead to prime agricultural land being wasted.

TasFarmers chief operating officer Neil Grose said Rushy Lagoon had been producing food and fibre since the 1950s.

“Tasmanian farmland is here to grow food, it’s here to grow fibre,” Mr Grose told The Weekly Times.

“It’s grown beautiful, superfine wool, it’s grown beautiful beef, it’s produced magnificent dairy products.”

“We cannot allow food security and prime agricultural land at Rushy Lagoon to be compromised by broad-scale carbon farming.”

ADF said those concerns should also be considered alongside wider changes affecting investment in Australian farmland.

“Farmers looking to expand their businesses or young farmers trying to enter the industry should not have to compete against the taxpayer land values being driven by huge corporate investment or carbon returns,” Mr Bennett said.

“This can flow through to the price of neighbouring farmland and fundamentally change who can afford to own and operate farms.”

Mr Bennett said the inquiry should provide greater transparency around the Rushy Lagoon decision and help governments develop better safeguards nationally.

“Productive agricultural land is a finite national asset. Decisions affecting its ownership, value and future use need to consider food security, regional communities and Australia’s long-term agricultural production capacity.”

“Rushy Lagoon should be the opportunity to properly examine those issues.”

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.”