Norco lifts farmgate as input costs for dairy farmers bite

One of Australia’s dairy bosses says conditions for farmers are ‘exceptionally difficult’ and has lifted prices at the farmgate.

A flood and inflation-triggered step up has been announced by Norco as its suppliers mop up following the NSW and Queensland deluge.

Norco’s farmgate price will be lifted by five cents across the board, raising the average price per litre paid to farmers to 84 cents.

Norco chief executive Michael Hampson said the farmgate lift represented an extra $1.6 million to the co-operative’s 281 active members.

The five cent increase will apply for May and June 2022, after which new season prices apply in line with the Federal Government’s mandatory dairy code of conduct.

Mr Hampson said dairy farmers had been hit by the NSW/Queensland floods as well as the rapidly increasing cost of production.

“We are constantly looking at ways to increase the milk price for our members and industry at large and given the devastating impact of recent weather events on the Norco supply base,” Mr Hampson said.

“There has never been a more important time to deliver this support to farmers.”

Prime Minister Scott Morrison toured Norco’s Lismore plant alongside Mr Hampson last month to witness first-hand the damage caused by the northern NSW floods.

“Following the floods, many of our farmer members have repair costs in the tens of millions,” Mr Hampson said.

“This follows periods of rising operating costs and decreased production due to the significant and prolonged weather conditions which has placed added cash flow pressures on our members.”