Australia’s dairy lobby leaders say processors need to increase farmgate prices
All three major dairy processors are yet to budge from their respective opening prices — 13 weeks since the 2020-21 season kicked off.
STATE dairy lobby leaders have united in a call for processors to raise farmgate prices in a springtime step-up salvo.
Saputo and Fonterra both offered an average farmgate price of $6.40 a kilogram of milk solids prior to the July 1 opening. Bega split its average figure down regional lines — $6.40 offered to southern Victoria suppliers and $6.55/kg of milk solids to northern Victoria.
All three major processors are yet to budge from their respective opening prices — 13 weeks since the 2020-21 season kicked off.
United Dairyfarmers of Victoria president Paul Mumford said processors had a greater ability to boost farmgate figures given the upswing in international market conditions.
“The processors need to remember where the milk comes from — sitting on the same price when the market has changed isn’t good enough,” he said.
“When the processors are doing well, farmers expect to share in that.”
NSW Farmers Dairy Committee chairman Colin Thompson said prices needed to rise on labels in the supermarket refrigerator in order to see change at the farmgate.
“Because NSW is largely a fresh milk state, we need to see supermarkets move away from loss leader milk,” he said.
“It was dollar a litre for eight years — that wasn’t keeping up with inflation, with the cost of production. Still at $1.20 a litre, it’s far too low.”
Margaret River-based Ian Noakes was appointed president of the WA Farmers dairy council last week.
He planned to meet with processors in coming weeks to put forward the case for an improved farmgate price.
“The attitude of the processors is improving (in WA). There’s a growing acknowledgment that prices can’t continue the way they have been if they want to maintain a viable industry here,” Mr Noakes said. “So yes, there’s room to improve the farmgate price.”
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