Australian Dairy Farmers Disheartened by Low Milk Prices

Australian dairy farmers are expressing deep concern over the recently announced opening farm gate milk prices for the upcoming financial year. Despite a slight increase from the previous year, with prices ranging between $8.60 and $9.20 per kilogram of milk solids, many farmers argue that these rates fall short of covering escalating production costs.

The industry is grappling with a combination of severe climatic challenges—droughts in key regions like Victoria, South Australia, and Tasmania, and floods affecting New South Wales and Queensland. These events have not only disrupted production but have also led to increased operational expenses.

Mark Billing, President of Dairy Farmers Victoria, emphasized the unprecedented financial and emotional strain on farmers, stating that without adequate price support from processors, Australia's milk production could face a significant decline. Echoing this sentiment, Bernie Free, President of United Dairyfarmers of Victoria, warned that the current pricing could drive farmers out of the industry, exacerbating supply issues.

Farmers had anticipated prices between $9.20 and $9.50 per kilogram of milk solids to sustain their operations. The shortfall in expected pricing raises concerns about the long-term viability of dairy farming in Australia, especially amidst ongoing environmental and economic challenges.

Industry Insight:
The disconnect between farm gate prices and rising production costs underscores the need for a more responsive pricing mechanism. Without timely interventions, Australia risks a contraction in its dairy sector, potentially impacting both domestic supply and export commitments.

Source : Dairynews7x7 June 4th 2025 Read full article here