Norco raises price of milk by 5c to support struggling farmers
Australia’s oldest and last operating 100 percent farmer-owned dairy cooperative has raised farmgate milk prices by 5 cents as rising costs put farmer livelihoods at risk.
From May 2026, Norco’s 5 cent price increase will see farmgate milk prices rise to 97 cents per litre, delivering an additional $1 million to farmers’ each month.
Norco is also calling on the wider industry to step up and better support farmers as financial pressures rise across the sector.
Norco CEO Michael Hampson says the fuel and fertiliser shortages due to ongoing global uncertainty is causing unprecedented increases in input costs for farmers and across the entire supply chain.
“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,” Hampson said.
Hampson cautioned that though this price increase is a necessary step, it will likely not be the last, as ongoing pressures will require further action to support farmers and the future of the industry.
“Right now, farmers critically need these increases to remain viable and protect their livelihoods – that’s the sheer reality of the situation.”
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He adds that these pressures are expected to curb this year’s winter planting, which will significantly reduce supply and increase input costs even further.
“These cost pressures are unlike anything we’ve ever seen before, and without industry-wide action to better support farmers, the future of the sector is at real risk,” Hampson said.
Fourth-generation Norco dairy farmer Andrew Wilson says farmers are directly facing the impacts of cost escalations every day.
“Whether its fuel for machinery, fertiliser for the paddocks or just keeping things running, the costs keep rising and it’s something you can’t step away from.
Wilson adds that as a farmer, every day is a different challenge, but when these unique pressures are thrown into the mix, it’s time to start seriously considering what needs to be done.
“Selling cows to pay the bills, sowing less, vet bills, can we afford to maintain our cows’ optimum health? – they’re really hard decisions.”
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He adds that as fuel and fertiliser prices have increased by 100 percent, this price increase will have a significant impact on the industry from small to large farms.
“It’ll help 40 percent of what our costs are going to be so any help is welcome – now we’ll just have to look at other cuts to maintain the farm viability.”
Wilson warns that if pressures continue, there’s a real risk that not all farms will have the capacity to keep functioning, which is why increased support is so important right now.
“We’re incredibly grateful for that support and the understanding from Australian consumers. It might seem like a small change at the checkout, but it makes a real difference on farm and helps us keep going,” he said.
Michael Hampson adds that in such a critical environment, it’s important for shoppers to understand where their money is going and to support Australian farmer-owned brands.
“We know we’re asking shoppers to pay a bit extra for their milk, but I want to assure them that this increase is directly supporting our farmers during these challenging times – with every cent flowing back to them and their regional communities,” Hampson said.
Woolworths also announced last week that they will lift the price paid to dairy farmers in NSW and Queensland by 10 cents per litre from April 1.
Brisbane-based assocation combining Dairy Connect and Queensland Dairyfarmers’ Organisation, eastAUSmilk’s president Tim Bale welcomed the news, who helped negotiate the price lift with Woolworths.
“We want to see all retailers and processors follow the lead set by Woolworths in lifting prices paid to dairy farmers by 10c/L immediately. It is important for all dairy farmers to receive a price increase,” Bale said.
“Woolworths has clearly set the precedent and any processors or retailers that do not follow their lead over the next week will see a plummeting of their milk supply over the coming months.”
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