Lactalis followed Bulla’s move with a 20-cent increase across southeastern Australia, while smaller player Frestine boosted its offer by 12 cents, bringing its average to $9.00/kgMS. These adjustments bring the total number of step-ups to eight since early June, reflecting heightened competition in the domestic market as processors aim to retain and attract suppliers ahead of the July 1 reset.

Despite the upward trend, some processors—including Bega, KyValley, and Union Dairy Company—have yet to announce their revisions. Market analysts like Milk2Market’s Richard Lange note that the traditional divide between export-focused and domestic processors is fading, as both sides increasingly compete on the same ground, blurring market strategies and pricing behaviors.

Farmers, meanwhile, remain skeptical. Gippsland producer Darcy McAlpine argued that the price needs to reach at least $9.50/kgMS to deliver sustainable profitability. He criticized processors for previously blaming weak markets—both domestic and international—for subdued prices, only to maintain cautious pricing even as market conditions improve. Drought and rising input costs are further eroding margins, leaving little room for error.