Rising competition pushes leading dairy processors beyond $9.50 as GVC seeks extra 140M L of milk.
Goulburn Valley Creamery (GVC) has raised its opening farmgate price to a competitive $9.70 per kilogram of milk solids (kgMS) for exclusive suppliers, aiming to secure an additional 140 million liters of milk. With less than a week remaining before the new financial year, GVC’s latest step-up underscores intensifying bidding among processors to attract high-quality milk.
This move ranks GVC among the top payers in southeastern Australia, as only a few others—including Bulla—have surpassed the $9.50/kgMS mark. Bulla itself recently adjusted its pricing range to $8.90–$9.50, incorporating a 20-cent performance-based top-up that mirrors the premium strategy applied by GVC .
Smaller processors like Frestine also joined in on the price surge, increasing their offering by 12 cents to reach around $9.00/kgMS. However, some larger groups, including Bega, KyValley, and Union Dairy Company, have yet to confirm any pre-season price revisions, creating a patchwork market .
Australian Dairy Farmers president Ben Bennett stressed that only prices above $9.50/kgMS reflect true production costs amid persistent drought and soaring fodder prices. He criticized Fonterra’s earlier low starting price as a deliberate tactic to delay price escalation until closer to July .
The aggressive price adjustments indicate a market in flux, driven by both competition and cost pressures. As processors vie for milk ahead of the new season, farmers stand to benefit—but keeping margins healthy will depend on sustained support and clear pricing signals into the season proper.
Source: The Weekly Times – Goulburn Valley Creamery issues dairy farmgate step up
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