Australian Dairy Products Federation defends opening prices

Australia’s processor representative body has defended new farmgate milk prices, saying some are up 14 per cent on three years ago. But farmers have slammed the comments.

Australia’s processor representative body has defended the new season’s farmgate milk prices, noting the southern region figures are 14 per cent up on three years ago.

Australian Dairy Products Federation chief executive Janine Waller said the 2024-25 season figures for the southern region were “more closely aligned with global market conditions.”

Janine Waller, ADPF executive officer.

The ADPF noted the estimated weighted average farmgate milk price of $7.94 to $8.20 per kilo milk solids was up to 14 per cent higher than the 2021-22 financial year.

“The last couple of year’s record-high milk prices, led to an influx of international dairy products, resulting in unprecedented imports and high consumption of cheaper overseas alternatives,” Ms Waller said.

“We want to ensure Aussie families can continue to enjoy affordable, locally made and

branded milk, cheese, yoghurt, butter and ice cream in their homes.”

The ADPF statement comes as Australia’s leading dairy farmers have warned current pricing will force many primary producers to leave the sector.

United Dairyfarmers of Victoria president Bernie Free said the ADPF’s claim of the milk price being up 14 per cent on three years ago was “an insult to farmers.”

“Look at inflation over the past three years — it’s being running rampant at 6 to 8 per cent in recent cycles — and that’s just consumer inflation,” he said.

“Inflation for input costs — electricity prices, labour costs, chemicals, fuel, fertiliser — have all increased substantially.

“ADPF talk about affordable dairy produce for families but they’re silent on the affordability of these opening price cuts on dairy farmers and their families.”

eastAUSmilk president Joe Bradley said opening prices undercut confidence at the farmgate, meaning more farmers would be considering leaving the sector.

“We’ve already lost so many farmers, this is just another blow,” he said.

Ms Waller said opening prices were a minimum for the season with the potential for price reviews.

“Compared to the (farmgate milk price) paid by major global competitors, the southern Australian price remains at a premium,” Ms Waller said.

“It is up to 10 per cent higher than New Zealand’s milk price midpoint of $A7.43 per kilo milk solids — protein adjusted.

“It’s important to remember the announced (farmgate milk price) are minimums for the season, with incentives on offer and the possibility of price reviews as global market conditions improve.”