Higher dairy prices for consumers and fewer farmers.

They are some of the possible consequences of NSW farm gate milk prices falling short of expectations.

NSW processors have announced opening milk prices for the 2025-26 season, with prices ranging from $12.30/kg of milk solids in the north of the state to $9/kg MS in southern NSW for the year ahead.

Blighty dairy farmer and NSW Farmers Dairy Committee chair Mal Holm said while these prices would have delivered reasonable returns in seasons past, in today’s climate it just wasn’t enough.

He said record floods and skyrocketing input costs meant prices would ultimately fail to keep many farmers in business this year.

“These latest floods [in northern NSW] might just be the last straw for many farmers who were under enormous strain thanks to the huge cost of production,” Mr Holm said.

“The cost of producing milk is only going up, while milk prices remain down, and proper disaster assistance is still nowhere in sight to get farmers back on their feet after a string of horrific floods.

“It’s forcing family farmers out the door after generations in the game, and it’s time we stood up and said we need stronger prices for a stronger industry.”

As farmers looked to the season ahead, Mr Holm warned the future of the industry hinged on stronger prices for its farmers.

“Australian dairy farmers have delivered families milk, cheese, butter, yoghurt and ice cream for decades, it’s a proud tradition and an important part of our food supply,” he said.

“Dairying is a tough job — now, more so than ever — and while the supermarkets are pushing their profits up, they’re not interested in delivering returns to the farmers that work so hard to produce this great product.

“Milk prices must provide reasonable returns to dairy farmers, so we don’t lose our local milk production to cheap imports.

“Aussie families deserve Aussie dairy, and nothing less than that.”

NSW Member for Murray Helen Dalton called on processors to admit their current offer to farmers was far too low.

She said assistance for producers also needed to be revised.

“We just need a fair price to be paid [by processors] so that farming families don’t go broke,” Ms Dalton said.

“We’ve got farming families that are barely scraping through with disaster relief payments.

“At the same time, the cost of everything from feed to transport has gone up. This combination of circumstances is the worst possible outcome.”

Ms Dalton said without a better offer, Australian shoppers may be forced to give up Aussie-made dairy products.

“Australians go to the supermarket and expect to be able to buy Australian made dairy products,” she said.

“But the way things are going, we won’t have any Aussie farmers left, and we will be forced to get our milk and cheese from overseas.”

EastAUSmilk, which represents dairy farmers in NSW and Queensland, also expressed disappointment with the opening milk prices.

“Farm businesses coming to the end of their current Milk Supply Agreement, that have a choice of milk processors to supply, should make a proper milk price comparison of all your processor options,” eastAUSmilk chief executive officer Eric Sanzi said.

“Given the opening prices announced are below where they are likely to be at the end of June, I would encourage all farmers to hold off signing any contracts until they do a proper assessment of all options and wait until the end of June to sign any contracts,” he said.

“There should be increases in prices over the next month in most regions and farmers have no leveraging power with processors if they blindly sign contracts now.”

– with Zoe McMaugh.

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Thursday, 22nd May 2025

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