Industry warns sustainable farmgate returns are critical to securing national milk supply and long-term resilience.
Australian Dairy Farmers has called for urgent reforms to ensure fair and sustainable milk pricing, warning that current conditions are placing increasing pressure on producers. The group argues that without improved farmgate returns, the long-term viability of Australia’s dairy sector—and its role in national food security—could be at risk.
Farmers highlight that rising input costs, including feed, energy, and labor, are eroding profitability, while milk prices have not kept pace with these increases. This imbalance is forcing difficult decisions at the farm level, including reduced investment, herd contraction, and in some cases, exits from the industry.
The organization stresses that a transparent and equitable pricing system is essential to restore confidence across the dairy value chain. Ensuring that farmers receive a fair share of market returns is seen as a key step in stabilizing production and maintaining consistent milk supply for processors and consumers.
In addition, the group underscores the strategic importance of domestic milk production, particularly in the context of global supply chain volatility. Strengthening the resilience of local dairy farming is viewed as critical to safeguarding food supply and reducing dependence on imports.
For the broader dairy industry, the call to action reflects ongoing structural challenges in balancing cost pressures with sustainable pricing mechanisms. Addressing these issues will be central to supporting farm-level viability, encouraging investment, and ensuring the long-term competitiveness of Australia’s dairy sector.
Source: Australian Dairy Farmers – https://australiandairyfarmers.com.au/media-release/farmers-call-for-fair-milk-pricing-to-secure-australias-food-supply/
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