Norco Announces Continued High Milk Prices Amid Industry Challenges
Source: The DairyNews
Norco's Chief Executive Officer Michael Hampson recently announced that the cooperative will maintain an average milk price of 89.5 cents per liter for its northern NSW and Queensland farmers, amidst market challenges and downward price pressures.
Hampson emphasized the importance of the ongoing support from loyal customers, which has enabled Norco—a 100% Australian farmer-owned cooperative—to uphold its record high milk prices. He highlighted the commitment of the cooperative to support its 281 farmer members, underscoring the value Norco places on the dedication of its farmers to deliver high-quality milk to supermarket shelves.
“Equally, the best way consumers can continue to support our hard-working dairy farmers is to keep choosing Norco when doing their weekly shop," Hampson said, noting the growth in sales of Norco branded milk despite the challenging economic environment. He also mentioned that Norco would explore further options to increase milk prices to farmers throughout the year, continuing a trend of price improvements after the season's start.
Conversely, other dairy farmers are facing significant challenges, as companies like Saputo and Fonterra offer prices up to $1/kg MS less than last year’s opening minimum. Phil Ryan, Chair of the NSW Farmers Dairy Committee, expressed concern over the impact of price drops combined with high input costs and competing land use priorities, which are forcing many dairy producers to reconsider their futures in the industry.
“These prices are a fresh hit to farmers already grappling with huge pressures on production, from labour shortages and interest rates to fuel costs and electricity prices,” Ryan stated. He warned that the cost of these milk price cuts could exceed $600 million in the next financial year, potentially causing substantial job losses and economic impacts in regional communities.
In Victoria, dairy leaders have indicated that the new prices offer little incentive for suppliers to increase production volumes. Australian Consolidated Milk (ACM), based in northern Victoria, announced a forecasted price range of $7.80 to $8.20/kg MS. Michael Auld, ACM's executive chairman, cited the volatile market conditions, cost of living pressures, and increased local milk supply as key factors influencing operations.
“We continue to see large producing regions like the EU and the US slow milk production due to various factors. As demand signals improve, we believe this will have a positive farm gate price impact both in financial year 2025 and the longer term for ACM and our suppliers,” Auld said.
“Equally, the best way consumers can continue to support our hard-working dairy farmers is to keep choosing Norco when doing their weekly shop," Hampson said, noting the growth in sales of Norco branded milk despite the challenging economic environment. He also mentioned that Norco would explore further options to increase milk prices to farmers throughout the year, continuing a trend of price improvements after the season's start.
Conversely, other dairy farmers are facing significant challenges, as companies like Saputo and Fonterra offer prices up to $1/kg MS less than last year’s opening minimum. Phil Ryan, Chair of the NSW Farmers Dairy Committee, expressed concern over the impact of price drops combined with high input costs and competing land use priorities, which are forcing many dairy producers to reconsider their futures in the industry.
“These prices are a fresh hit to farmers already grappling with huge pressures on production, from labour shortages and interest rates to fuel costs and electricity prices,” Ryan stated. He warned that the cost of these milk price cuts could exceed $600 million in the next financial year, potentially causing substantial job losses and economic impacts in regional communities.
In Victoria, dairy leaders have indicated that the new prices offer little incentive for suppliers to increase production volumes. Australian Consolidated Milk (ACM), based in northern Victoria, announced a forecasted price range of $7.80 to $8.20/kg MS. Michael Auld, ACM's executive chairman, cited the volatile market conditions, cost of living pressures, and increased local milk supply as key factors influencing operations.
“We continue to see large producing regions like the EU and the US slow milk production due to various factors. As demand signals improve, we believe this will have a positive farm gate price impact both in financial year 2025 and the longer term for ACM and our suppliers,” Auld said.
