eastAUSmilk Media Release…

04 June 2026

Processors release disappointing opening prices

All milk processors are required to release minimum contracts on 1 June every year. This year, farmers were hoping for a significant uplift in prices given the recent large increase in fuel, fertiliser and feed costs. As a minimum, farmers were hoping for prices to stay the same all of next financial year including the 5c/L fuel and fertiliser payment. However, most farmers were very disappointed by what they saw on Monday.

Not 1 processor committed to maintain current payments for all of next financial year. Some offered modest increases in base price, but overall payments were down. Some processors didn’t offer any commitment re the 5c increase announced in May. While some processors took away the 5c/L and also dropped the price further.

I would encourage all farmers who are off contract to not rush to sign any of the low ball contracts that have been offered. Farmers should find out who is chasing milk in their region and get price estimates off all of them. Farmers should not rely on average prices advertised by processors which are very unlikely to be applicable to your farm. You should get estimates done on the production on your farm over the past 12 months so you can accurately compare processors. The entire contract along with any fine print should be taken into account, with any questions raised with the processor for clarification.

Farmers then should negotiate with the highest paying few processors before making any decisions to sign a contract. It is counter productive for any farmer to sign a contract before the end of June and don’t be pressured into doing so.

If prices do not increase significantly by early July, many farmers will cut back on production and some will exit. There is no value in farmers continuing to produce milk at a loss if prices do not adjust to reflect the significant increase in costs. The prices announced by processors clearly indicate that processors want less milk than they currently have.

If any member of eastAUSmilk is coming off contract at the end of June, I encourage you to contact us so we can assist you find the best price possible for your farm.

Tim Bale

President eastAUSmilk & NSW dairy farmer (0427 535 511)

(Alternatively, call Waylon Barron, vice president eastAUSmilk & Qld dairy farmer (0417 961 266) or Joe Bradley, director eastAUSmilk & Qld dairy farmer (0400 642 063))