Australian dairy farmgate prices: Queensland boasts best figures

Liquid milk prices reveal northern NSW and Queensland farmers are the best paid on a cents per litre basis, compared to their southern counterparts. See all the latest prices.

Australia’s dairy heartland is receiving some of the nation’s lowest prices while smaller state markets have pushed way past 90 cents a litre for milk.

Analysis of liquid milk prices nationwide indicates farmers in the northern NSW/Queensland market are the best paid on a cents per litre basis, while some in Victoria and Tasmania are at the bottom rung.

While staying flat compared to last season, northern NSW/Queensland dairy farmers will still enjoy returns of 91c a litre in the 2025-26 financial year, equating to roughly $12.35 per kilo milk solids.

In the final days before the start of the season, Lactalis stepped up price to 91.6 cents a litre, equating to above $12.40 per kilo milk solids.

In southeastern Australia, the low-ball start of July 2024 at 60c a litre or roughly $8.10 per kilo milk solids was not replicated, although pricing varied wildly depending on the processor.

While major processors clocked in at roughly 66c a litre, or $8.90 per kilo milk solids, some processors across the Victorian, Tasmanian, Riverina and South Australian markets ended closer to 70c a litre or in the $9.50 per kilogram milk solids range.

Colac region farmer Lachie Sutherland said it was heartening to see prices rise in June after a lacklustre start, given the high prices for fodder and fertiliser.

“It’s good to see it get to a reasonable position in the end, but its disappointing it only got to that position in the eleventh hour,” Mr Sutherland said.

July 2, dairy average prices graphic. The Weekly Times

“We’re talking of a gain of about $1 per kilo (milk solids) over the course of June, in some instances, which can be the difference between profit and going backwards.

“I hope the current pricing strikes the right balance between farm profitability and processor profitability. From a farming perspective, input costs are high no matter where you are in Victoria and other states are feeling the strain too.”

Middle NSW — the market around Sydney — lived up to its name with middle-of-the-pack pricing. In July 2024, the Sydney market clocked in at 71c a litre, or $9.60 per kilo milk solids, to start off the 2024-25 season while now that figure is north of 79c a litre or $10.60 per kilo milk solids.

In Western Australia, opening prices for this season were on track to be 69c a litre or around $9.30 per kilo milk solids, similar to the 2024 result.

However, WA Farmers dairy president Ian Noakes said step ups in June had lifted that average to roughly 71 cents or $9.60 per kilogram milk solids.

“It was a terrible opening offer at the start of June in WA. But there’s been some competition across the month and now we’re talking around 71 to 72 cents a litre,” Mr Noakes said.

“Low priced generic milk is the elephant in the room for a state like ours. It’s keeping the price at the farmgate low and continues to do enormous damage to dairy farming.”