Opening milk prices disappointing

Higher world prices and a lower exchange rate have caused opening farm gate milk prices to increase in southern NSW and Victoria. However, this has not had any impact on prices in northern NSW and Queensland where opening prices have remained unchanged.

Milk prices in Victoria (including NSW Riverina) have lifted from a 60c/L (8.10/kg) opening milk price in June 2024 to an opening milk price of 66c/L ($8.90/kg) in June 2025. Milk prices in New South Wales, Sydney and South Coast have increased for some processors from 71c/L ($9.60/kg) in June 2024 to 79c/L ($10.60/kg) in June 2025. This is a positive move but still well shy of where prices should be based on current world prices which is closer to $10/kg in Victoria.

Southeast Queensland average advertised milk prices have remained the same as last year at 91c/L. Milk prices for Northern NSW have remained the same as the previous season. In North Queensland average advertised milk price has remained the same for June 2025 at 88c/L. Unfortunately, this shows a complete lack of competition between processors north of Sydney.

Farm businesses coming to the end of their current Milk Supply Agreement, that have a choice of milk processors to supply, should make a proper milk price comparison of all your processor options. If you are coming off contract and want to have a milk price comparison for the please contact eastAUSmilk.

Given the opening prices announced are below where they are likely to be at the end of June, I would encourage all farmers to hold off signing any contracts until they do a proper assessment of all options and wait until the end of June to sign any contracts. There should be increases in prices over the next month in most regions and farmers have no leveraging power with processors if they blindly sign contracts now.

Eric Danzi, CEO eastAUSmilk