eastAUSmilk Media Release…

27 March 2026

World conflict causes chaos for dairy farmers

The ongoing conflict in the middle east is causing chaos in the dairy industry.

The cost of 2 major inputs for dairy farms being fuel and fertiliser have gone up by unprecedented levels. Dairy farmers can’t afford to see what happens over the next few weeks, the effect has been immediate and at a crucial time for silage harvest and winter planting.

We need a price increase immediately before mass exodus occurs.

“The cost of urea has gone from $800 to $1800 in the past month. Price increases of this level have never happened before,” said Mr Bale, President eastAUSmilk.

“The price for diesel is now over $3/L compared to under $2/L just weeks ago, said Mr Bale.

“Fuel and fertiliser are 2 major input costs for dairy farmers and cost increases of this magnitude cannot be absorbed by dairy farmers. Farmers will cut back production or exit the industry over the coming months if something isn’t done immediately,” said Mr Bale.

Food security has been talked about for years, but rising costs cause farmers to cut back, less inputs, less fodder, less food for Australia.

“We strongly encourage all milk processors to immediately negotiate with their customers, including major retailers, to adjust prices to reflect the cost increases felt by both farmers and processors,” said Mr Bale.

“We want to see dairy farmers, processors and retailers all receive a fair increase in price to reflect the massive escalation in input costs that are facing,” said Mr Bale.

We cannot afford to wait until new contracts in July.

“The current price of store brand milk is $3.30 for 2 litres. It is unfathomable to see how any milk could sell for less than $4.00 for 2 litres given the current cost increases,” said Mr Bale.

Tim Bale
President eastAUSmilk (0427 535 511)