Colac dairy farmer Lachie Sutherland’s property before and after drought

Lachie Sutherland says market forces highlight how dairy farmers are being undervalued this season. Here’s his suggestions to change the game.

Located at the epicentre of a drought, Lachie Sutherland has seen a lot of disappointing numbers in the rain tally for the past two years.

But the Colac region farmer said the release of June opening prices were numbers that were not inevitable and had capacity for change.

Most processors opened between $8.70 and $9.00 per kilo milk solids last week, a slight boost on the June 2024 opening figures but still below the $9.50 to $10 per kilo range that dairy farmer lobby groups had hoped for in a drought year.

“Farmers should not accept the bare minimum,” Lachie said.

“Instead, they should demand the maximum prices available to allow their businesses to thrive.

“A prosperous dairy farmer is the backbone of a thriving rural economy. Yet, many remain at the mercy of processors who prioritise their own margins over the fair compensation of those who make the industry possible.”

With wife Rebecca, the Sutherlands milk a 380-strong herd at Larpent, near Colac in southwest Victoria. Like hundreds of farmers across the southwest, they’re usually accustomed to seeing ankle-high green grass in early June, not the flat brown-and-beige pastures that are usually only sighted at the tail end of summer.

June 2025: Lachie Sutherland is a long-time dairy farmer near Colac. Photo: Zoe Phillips.

The Dairy Farmers of Victoria board member said processors had an opportunity this month to improve their initial offerings, with Australian Consolidated Milk the only processor so far to provide a revised price of $9 per kilo milk solids.

“Current market conditions indicate the potential for higher milk prices, and dairy farmers must insist that this potential be realised,” Lachie said.

“It is only fair for farmers to receive compensation in line with the value their milk commands in the marketplace.

“The next month provides a critical window for processors to adjust their pricing structures to better reflect these conditions, offering prices that ensure farmers can continue to sustain recover and hopefully grow their operations.”

How Lachie Sutherland’s property near Colac appeared before the drought back in June 2023. Picture: Nicole Cleary

At the start of the 2023-24 season, Lachie was bullish about the prospects for dairy with processors offering between $9.20 to $9.50 per kilo milk solids two years ago.

He said it gave the industry a much-needed boost after the 2016 Murray Goulburn and Fonterra clawback but now relations were back to square one.

He said the recent round of milk price announcements had left many farmers “feeling undervalued and frustrated.”

“The processors continue to rely on casual and impersonal methods to disclose information that cuts deeply into the livelihoods of dairy farmers,” he said.

“It’s disappointing that an industry of such stature and significance has reduced itself to using fleeting text messages and social media posts to share price updates.

“These methods lack the gravity and respect needed for such consequential decisions. Price disclosures should embody transparency, clarity, and direct engagement with dairy farmers, treating them as the critical stakeholders they are—not as distant recipients of information.”

Lachie said clear communication was the first step toward fostering a healthier relationship between the processors and the farmers.

He said public forums, direct consultations, or personalised income estimations would signify a shift toward fair treatment of farmers and greater accountability in the industry.

“Dairy farmers invest their time, energy, and resources into producing high-quality milk, often under challenging conditions, and deserve to be treated with dignity,” he said.