Earlier increases from major dairy players like Bulla, Fonterra, Saputo, and Frestine set the momentum. Bulla had already bumped its range to $8.90–$9.50 MS, while Frestine, a smaller co-operative, added 12c, boosting its offer to $9.00 MS . Fonterra and Saputo also raised their bids in response to mounting cost pressures and market demand.

Industry voices stress that offers above $9.50 MS are necessary for farms to break even amid soaring feed and operating expenses. Australian Dairy Farmers president Ben Bennett highlights the current pricing as barely covering production costs during drought-induced fodder scarcity.

The backdrop to this pricing escalation includes record-high input costs driven by severe droughts and recent floods, which have pressured milk supply and farmer resilience. Dairy Australia and independent analysts warn that without sustained prices at or above $9.50 MS, more small dairies may be forced to exit the industry.