Bega provides second dairy farmgate step up for 2024-25 season
Bega has become the latest processor to provide a second step up this season. But boss Barry Irvin says dairy’s domestic sales are weakening.
Bega has upped the ante on rival processors, following Fonterra as the only dairy factories to provide a second step up this season.
The NSW-based processor confirmed a 10 cent step up for Victorian, Riverina and southeast South Australian suppliers – pushing its average milk price range to now sit at $8.15 to $8.45 per kilogram milk solids.
Bega executive chairman Barry Irvin said while international demand was rising, sales conditions in Australia were softer in 2025.
“This step up has been supported by strength in our international commodity business, mitigated by a weak domestic trading environment, where pricing in some key categories has decreased,” he said.
“This step up maintains Bega’s commitment to ensure we are delivering a competitive price for our suppliers.”
Earlier this month, Fonterra became the first to announce an autumn step-up in milk prices, lifting its rate by 20c/kg of milk solids.
Fonterra’s weighted average milk price now sits at $8.35/kg of milk solids, following a previous 15c/kg increase in December that saw others follow suit ahead of Christmas.
In December, Fonterra was also the first processor to lift at the farmgate for the 2024-25 financial year after a five month period of static pricing across the processing sector.
Arch rivals Saputo and Bega swiftly followed, although most smaller processors did not deviate from their June opening prices until January, generating criticism from farmer lobby leaders.
One of the key market indicators — the Global Dairy Trade Index — has lifted more than 20 per cent since the start of the financial year.
However, farmer lobby leaders and grassroots primary producers have noted farmgate prices have lifted a rate of only one-tenth that of GDT, despite a simultaneous weakening of the Australian dollar.
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