Norco Increases Farmgate Milk Price to Address Economic Pressures

Norco, Australia’s largest dairy cooperative, has announced an increase in its minimum farmgate milk price by 1.6 cents per litre, raising the total to 86.6 cents per litre. This decision is aimed at countering the economic challenges faced by Australian dairy producers, including cost inflation in key inputs such as fuel, feed, and labor.

This price increase is supported by Norco’s strong performance in its value-added dairy products and solid sales throughout the current financial year. The cooperative’s strategy focuses on balancing competitive farmgate milk pricing with maintaining strong operational performance in a competitive market.

The increased price is intended to ensure the long-term sustainability of Norco’s milk supply chain by helping farmers cover their rising production costs. This move is expected to incentivize continuous production and investment, thereby securing Norco’s raw material base and fostering farmer confidence.

Norco’s cooperative structure prioritizes the financial viability of its members. The price increase is a calculated effort to reward dairy farmers for their dedication and position Norco as a preferred processor in a tight supply market. This strategy highlights the benefits of a successful cooperative model in transforming market success into increased profitability for dairy producers.