Australian Dairy Farmers Corporation breaks $10 per kilo milk solids barrier
Australian Dairy Farmers Corporation has become the first processor to officially break the $10 per kilo milk solids barrier. Here’s how.
Australian Dairy Farmers Corporation is set to break through the $10 per kilo milk solids barrier in the new year, in the latest processor step up this spring.
ADFC confirmed a 25c boost to suppliers this week, with its split calendar system paying $9.55 per kilo milk solids for July to December this year and $10.05 per kilo milk solids for January to June 2026.
While a number of processors pay specific farmer-suppliers higher than $10 per kilo milk solids mark, ADFC is the first to officially confirm an average above the $10 threshold.
ADFC general manager Andrew Sutton said the corporation was looking to expand its supplier base in the 2026-27 financial year.
“We operate under co-operative principles, so we’ve always taken the approach about finding the right balance with profitability across the supply chain,” Mr Sutton said.
“We’re looking to recruit new suppliers next season — from all three dairy regions across Victoria. It reflects the strength of our business performance that we’re in an expansion phase.
“It seems at the moment that $10 (per kilo milk solids) is an aspiration in the industry, it’s like the four-minute mile. I know it’s not $10 across the whole season, but it shows that we’re keen to pass on gains to existing suppliers and attract new ones next season.”
ADFC management confirmed the revised price would be backdated from the start of this financial year.
Norco became the first processor to step up this season, lifting its offering to 90.37 cents per litre — equating to roughly $12.85 per kilo milk solids.
The dual-pronged farmgate lift is driven by a 1 cent per litre co-operative premium and an 0.5 cents per litre quality bonus payable from September 2025 for milk that meets specific quality thresholds.
Rabobank dairy analyst Michael Harvey said while international prices had been weaker in recent months, there were signs of strength in the domestic market.
“We’ve seen that strength with several processors offering step ups in recent weeks. You’d expect more to follow as the season plays out,” he said.
Fonterra was the first processor to announce its 2025-26 opening price, with an average of $8.60 per kilo milk solids confirmed seven days out from the mandatory dairy code deadline before rising to $8.90 by July 1.
In October, Fonterra confirmed a step up to its weighted average milk price to $9.05 per kilogram milk solids, while Saputo confirmed a revised $9.15-$9.25 per kilogram milk solids in Victoria and Tasmania.
