Dairy farmers to negotiate for higher milk prices – BeanScene

The industry body representing Australia’s dairy farmers says the newly announced milk prices for the coming financial year are a “conservative floor”, as macroeconomic factors continue to pressure the industry.

Australian Dairy Farmers (ADF), said the minimum prices – which had a deadline of 2pm on 1 June 2026 to be announced, are a welcome starting point.

Heading into the new seasons, agricultural advocacy group had targeted a benchmark price of $9.50 per kilogram of milk solids to be paid to dairy farmers. Instead, the final opening offers from major buyers falls between $8.20 and $8.80.

ADF President Ben Bennett says he is expecting a period of intense negotiation in the coming days.

“As an opening price, this is a conservative floor, given the environment we’re operating in,” he says.

“It gives farmers something to work with as we head into what is traditionally a very busy time negotiating and looking for competitive uplift prior to the end of the month.”

He says persistent cost pressures could impact milk production.

“We know input costs remain high, and that will continue to influence production decisions on farm. That’s something the whole industry is watching closely.

“We’re operating in a tight global environment and everyone in the supply chain needs to get a return. There’s no fat in the system at the moment.

“At the same time, international commodity markets and the Australian-US exchange rate are playing a significant role in underpinning farmgate pricing.

“Under those circumstances, we’re in a relatively sober position.”

The benchmark of $9.50 is approximately 20 per cent higher than last season’s average price.