Opening milk prices described as 'very conservative' and lower than hoped
Opening milk prices have proven less than what producers were hoping for this year. Picture by Paula Thompson
Opening milk prices for the 2025-26 season have been described as "very conservative", with producers hoping for more to help offset crippling fodder costs.
Prices for South Australia opened up with;
Fonterra at $8.60 a kilogram of milk solids.
Bega Group has announced a price range of $8.85-$9.69k/MS.
Lactalis Australia is at $8.80-$9.40/kgMS.
Saputo Dairy Australia has opened at $8.75/kgMS.
Union Dairy Company is at $8.80/kgMS.
The highest prices being offered by Fleurieu Milk Company, head and shoulders above others at $10.50kg/MS.
La Casa Del Formaggio is at $9.50kg/MS.
SA Dairyfarmers' Association president Robert Brokenshire said while a handful of local processors had maintained healthy pricing, the organisation was concerned that the very modest increases offered by many major processors would not address the significant increases in feed and business costs experienced by all dairy farmers in this time of severe drought.
"With the exception of a couple of processors who have really tried to help farmers, it's been disappointing," he said.
"Anything less than $9/kgMS makes it hard for dairy farmers. Preferably, prices would have been more in the mid-$9/kgMS.
"Maintaining a fair and sustainable farmgate price is essential to ensure farmers can continue producing high-quality milk without threatening their viability.
"While we recognise that all stages of the supply chain are experiencing increased cost pressures, we're calling on processors and retailers to reassess their opening prices over the coming weeks.
"Without sustainable farmgate prices, processors risk losing access to local milk supply - and without that, they don't have a business."
Mr Brokenshire said 2025 had already proven to be one of the most challenging years on record for dairy farmers.
"The ongoing effects of inflation, particularly on input prices, have made the business environment more difficult," he said.
"When combined with the driest two years on record in most dairying regions, the situation has become dire for many of our farmers."
He is urging a more collaborative approach between farmers and processors to address the challenges ahead.
"Working together, we can develop innovative solutions to improve efficiency, reduce costs, and enhance product value," he said.
DairySA chairman Andrew Cavill said prices were generally less than hoped for, particularly at a time farmers were dealing with enormous fodder costs.
"It's very conservative," he said.
Mr Cavill said that while it was pleasing to see some processors come out with a figure starting with 9, he would have liked to have seen more.
"We know it's a very challenging environment for farmers at the moment, so I would have liked to see a bit more," he said.
"A farmer's primary responsibility is to feed people and if we can't do that, it's an issue for everyone."