WA dairy farmers are ‘disappointed’ by farmgate prices as input prices continue to put the pressure on

WA dairy farmers impacted by skyrocketing input prices are disappointed by next season’s farmgate prices but hope continued lobbying towards processors could result in a much-needed price rise. Australian dairy companies revealed their opening milk prices on June 2, a month before the start of the financial year, as required under the mandatory milk pricing code. WA’s major dairy processors including Brownes, Coles and Lactalis — which owns Harvey Fresh — have left their prices unchanged for the start of the 2025-26 financial year. Bega — which owns Masters — was the exception after increasing its milk price by 2c per litre on June 6 in response to the concerns of its suppliers. Farmers claim they needed more as they continue to struggle with drought, floods and the costs of production — with many concerned pricing has failed to match CPI for several years now. WAFarmers Dairy Council president Ian Noakes said farmers were “pretty disappointed” by the prices presented to them. “I definitely expected better,” he said. “Prices have not increased with any consequence for two or three years despite significant cost increases over that time. “I would’ve thought a minimum requirement would’ve been (to increase) five cents per litre — the absolute minimum requirement to try and rebalance the level of profitability that would be expected for the work that goes in. “Processors need to recognise their suppliers or risk losing supply.” Mr Noakes said the biggest cost increases have been in labour and electricity. “Farmers now have to wear these costs because we’re not getting it out of the marketplace,” he said. Meanwhile, the Fair Work Commission announced an increase to National Minimum Wage and modern award rates by 3.5 per cent on June 4. Bega responded to the concerns of its suppliers, raising its milk price four days post ACCC deadline. Mr Noakes said Bega’s price rise was “welcome” but farmers would like more. “At least (they’re) recognising they needed to do something,” he said. “We’ve been doing enough lobbying. . . usually they won’t (increase prices) unless they get short of milk.” Mr Noakes said homebrand milk was holding down the price of milk in the supermarket, with processors not able to make enough to pass the price on. “It’s putting pressure on this whole system, so I have a bit of sympathy for the processors,” he said. “But they have to negotiate a better deal on behalf of the farm, it’s as simple as that.” Brownes is paying from 50¢/L to 78¢/L, while Lactalis is paying from 50.57¢/L to 68.58¢/L. Lactalis receives 150 million litres per financial year from WA suppliers, more than 40 per cent of WA’s total milk production per annum. Bega — which pays by $/kg, in-line with other states — is paying from $6.23/kg butterfat m/v to $8.66/kg m/v and from $9.35/kg protein m/v to $12.99/kg. Coles is paying from $7.33/kg butterfat m/v to $9.73/kg m/v and from $9.02/kg protein m/v to $11.96/kg m/v, but Countryman understands the supermarket behemoth opened the door for discussions with suppliers two days after the prices were released. Fat, protein, quality and seasonal price incentives are also provided at different rates across processors. All four processors declined to comment. Dairy farmers in other parts of the country have also expressed their disappointment with the farmgate prices which range from $8.60 to $9.20 per kilogram of milk solids in the eastern states — a slight increase on last year. Many were hoping to be paid at least $9.20 to $9.50 per kilogram of milk solids — 70 cents per litre.