At least $9 per kilo milk solids is needed to keep farms viable next season, Dairy Farmers of Victoria president Mark Billing says.
A stronger farmgate price is needed next financial year, the Dairy Farmers of Victoria president says, with primary producers barely breaking even this season.
DFV president Mark Billing addressed members at the organisation’s Melbourne conference on Tuesday, the second annual meeting since the group formed in a split from the United Dairyfarmers of Victoria grouping nearly two years ago.
“There needs to be a 9 in front of the farmgate next season – it needs to be at least $9 per kilo milk solids,” Mr Billing said.
“We’re only four weeks away from the June deadline for the mandatory reporting of opening prices, and there’s real concern from farmers that the prices need to reflect both the cost of doing business on farm as well as the strong market for dairy internationally.
“Input costs are rising and the drought, which started in the west and is now encroaching on a larger and large chunk of Victoria, is cutting into any margins farmers are making.
“I recently secured a couple of B-double loads (of fodder) and the costs were eye-watering – that’s a common story for most dairy farmers.”
Larpent dairy farmer Mark Billing. Picture: Nicole Cleary
Speakers at the Melbourne conference included former UDV president Adam Jenkins, outgoing Dairy Australia chief David Nation, Australian Dairy Products Federation president John Williams and Regional Victoria parliamentary secretary Michaela Settle.
Also speaking at the event was outgoing Dairy Australia trade manager Charles McElhone, who has been appointed the next chief executive of the Australian Wool Exchange.
Mr McElhone said his time in the role coincided with an expansion of market access for Australian dairy.
“Market access has really improved particularly in southeast Asia and Australian dairy has benefited enormously from that,” he said.
“If you look at dairy consumption numbers in some of our newer trade destinations, there’s huge potential for growth when kilos per person being consumed is really only a fraction of that compared to Australia.”
Dairy Farmers Victoria president Mark Billing says the 2025-26 farmgate needs to be higher than current season pricing. Photo: Zoe Phillips.
In another session focused on dairy emissions reduction, Dairy Australia environment and manufacturing sustainability manager Ian Olmstead told the audience there was “growing regulatory and legal focus on carbon emissions here and overseas.”
“With the introduction of mandatory climate related financial reporting in 2025, Australian businesses are required to report on emissions across their value chain – including those that originate from farming operations,” Mr Olmstead said.
“The development of this road map is about ensuring that the Australian dairy value chain is taking a coordinated approach to meeting these requirements which minimises the financial and mental load placed on farmers.”
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