Farmer owned dairy co-op warns rising costs are intensifying pressure across the sector and putting farmer livelihoods at risk.
Norco, Australia’s oldest and last operating 100% farmer-owned dairy co-operative, has announced a five cent per litre increase to its farmgate milk price from May 2026, while calling on the wider industry to step up and better support farmers as soaring input costs intensify pressure across the sector.
This lifts Norco’s average annual farmgate milk price to 97 cents per litre, delivering an additional $1 million into farmers’ pockets each month – a necessary step to help offset soaring input costs driven by ongoing global pressures.
Norco Chief Executive Michael Hampson said ongoing geopolitical uncertainty is placing sustained pressure on the sector, with fuel and fertiliser shortages driving sharp increases in input costs for farmers, and across the entire supply chain.
“These cost increases are unprecedented. Our farmers are paying double for diesel, triple for fertiliser and 40 per cent more for freight. These pressures are simply unsustainable without meaningful support across the supply chain – and this price increase is a small but important step in helping to offset those pressures.
Call for industry action as pressures mount
Hampson applauded other processors that have taken similar steps to ensure fairer returns for farmers in the current climate, moves he said go a long way in easing some of the extreme burden farmers are facing.
However, he cautioned that while consumers may be paying more for milk at the checkout, those increases are not always flowing through to the farmgate.
“Unfortunately, despite some brands increasing their product prices, there are some processors that have not yet increased their farmgate milk price, at a time when farmers critically need it to remain viable.
“It’s not just Norco farmers under pressure – it’s farmers across the entire industry, and without broader action, these pressures will continue to build, posing a real risk to its future.”
What it means for shoppers – and farmers
Hampson further acknowledged how tough things are for Australians at the moment and wanted to thank shoppers for their ongoing support.
“We know we’re asking shoppers to pay a bit extra for their milk, but I want to assure them that this price increase is directly supporting our farmers during these challenging times, with every cent flowing back to them and their regional communities.
“To put it into perspective, the increase will likely amount to no more than 30 cents per week for shoppers. But that 30 cents will significantly ease the pressure on our farmers and help secure their livelihoods.
“This is not an opportunity to increase margins – it’s about ensuring the sustainability of our farmers and the future of the Australian dairy industry, so we can continue delivering for another 130 years.
“We encourage shoppers to understand where their money is going, and to support brands that ensure more of that value flows back to Australian farmers.”
