Australian Dairy Farmers Achieve $10/Kg Milestone in 2026 Pricing

This milestone was achieved through a 25-cent boost to supplier payments, creating a two-tiered payment structure. Suppliers will receive $9.55 per kilogram milk solids for July to December 2025 and $10.05 for January to June 2026.

ADFC's announcement positions it as the first processor to confirm an average price above the $10 mark, a significant move in the international dairy sector. According to ADFC General Manager Andrew Sutton, this achievement is comparable to breaking the industry's 'four-minute mile,' reflecting the organization's commitment to cooperative principles and improved supply chain profitability.

The competitive pricing environment in Australia has seen other players, like Norco, offering rates equating to approximately $12.85 per kilogram milk solids. Major processors such as Fonterra and Saputo have also announced recent price increases, underscoring a robust domestic price floor despite weaker international markets.

Rabobank dairy analyst Michael Harvey highlighted that while international prices have softened, the Australian market remains strong, as evidenced by several recent processor price increases. This suggests a strong demand or tight supply within the local market, prompting processors to offer competitive prices to secure milk supply.