Nation’s largest dairy co-op announces first spring step-up, outpacing Lactalis, Saputo, Fonterra, and Bega.
Norco has cemented its position as Australia’s farmgate price leader, announcing a springtime step-up that pushes its offering above $12 per kilogram of milk solids—the first processor nationwide to publicly confirm seasonal increases ahead of larger rivals including Lactalis, Saputo, Fonterra, and Bega. Management at the nation’s largest remaining dairy cooperative confirmed a forecast full-year average price across all regions at 90.37 cents per liter, equating to approximately $12.85 per kilogram of milk solids. This represents a 1.27 cents per liter increase over last season’s final average, demonstrating Norco’s commitment to maintaining competitive farmgate returns despite challenging market conditions.
Chief executive Michael Hampson detailed the two-component structure driving the farmgate boost, including a 0.5 cents per liter quality bonus payable from September 2025 for milk meeting specific quality thresholds, and a 1 cent per liter cooperative premium payable from January 2026 to members completing Norco’s annual farm data survey focused on emissions reporting. The survey captures farm inputs and methods, underpinning carbon reporting through the Australian Dairy Carbon Calculator that all members complete annually. This dual incentive structure rewards both product quality and environmental stewardship, positioning Norco as the last remaining major cooperative balancing economic and environmental sustainability for Australian dairy farmers.
Norco’s pricing strategy contrasts sharply with industry trends, as most southeastern Australian processors slashed farmgate prices in June 2024 to between $7.70 and $8.10 per kilogram of milk solids while Norco maintained its robust 2023-24 pricing into the 2024-25 season at $12.35 per kilogram. Hampson emphasized the cooperative’s mission to ensure farming sustainability for members, explaining that despite challenges at the 2024-25 season’s start, Norco deliberately maintained prices at previous season levels. This decision reflects the cooperative’s fundamental commitment to keeping dairy farmers in business rather than pursuing short-term margin optimization.
Australian Dairy Farmers president Ben Bennett congratulated Norco for leading the industry with its spring step-up, characterizing the result as “fantastic for farmers” and demonstrating “the power of farmer co-operatives in delivering for their members.” Bennett pointedly noted that dairy farmers in other Australian regions will rightfully question why their processors aren’t matching Norco’s performance, particularly given Norco’s consistent delivery of strong farmgate returns despite enduring several years of floods in northern New South Wales that directly impacted operations.
The pricing announcement underscores growing pressure on southern Australian processors who have operated without flood-related disruptions yet failed to deliver comparable farmgate returns, raising fundamental questions about value distribution along Australia’s dairy supply chain. Norco’s ability to maintain premium pricing while managing operational challenges positions the cooperative as a benchmark for farmer-focused business models, potentially intensifying competitive pressure on corporate processors to improve returns or risk losing suppliers to cooperative alternatives offering superior farmgate economics and member-centric governance structures.
Source: Weekly Times Now – Norco dairy co-op reveals record farmgate milk price
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