Dairy farmers wanted $9.50, here's what they got

IT WAS international milk day on Monday, June 1 but more importantly for the State’s dairy farmers, it was the day when milk companies had to submit their opening prices for the new season.

And you’d have to say they were generally in the ballpark.

Saputo (Southern) landed at between $8.80 and $8.90, down the road, Burra Foods went higher in a range of $8.90-$9.40, and Lactalis Mainland Dairy $8.65-$9.45 while others including Bega are yet to drop.

UDV Region 6 Councillor Ben Vagg was cautious in his response.

“The prices with a nine in front of them are where we believe it should be,” said the Leongatha South dairy farmer.

“We’re at the annual conference at the moment (United Dairy Farmers) and the general consensus is that we were hoping for an opening price of $9.50.” he said.

“There’s a lot of talk about the risks and variability, the risks from climate and also economically. If the companies want milk, they need to pay for it.

“Hopefully, we see competition for supply, and we see the price move up from here over the next month.”

Mr Vagg welcomed the decision by dairy farmers to come together again under the VFF/UDV banner and for Mark Billing to be elected as vice president, joining president Bernie Free, in the leadership team.

Mr Vagg was voted in as a member of the policy council.

Burra Foods explained its logic.

Burra Foods has announced an opening minimum farmgate milk price range of $8.90 to $9.40 per kilogram of milk solids for the 2026–27 financial year, covering the period from July 1, 2026 to June 20, 2027.

The announcement was shared with Milk Supply Partners following a series of recent supplier meetings across Gippsland, where Burra Foods discussed seasonal conditions, milk supply, market dynamics and the outlook for the year ahead.

A highlight of the meetings was reflection and discussion by participants on the recent Canada Study Tour, attended by more than 30 Milk Supply Partners.

Burra Foods Chief Executive Officer Stewart Carson said the announced range acknowledges the challenges being faced by Milk Supply Partners, while also reflecting risk and volatility in markets.

“We know many dairy farming businesses are continuing to operate in a challenging environment, and this opening minimum price range is intended to provide a solid starting point for the season ahead,” Mr Carson said.

“Our focus remains on working closely with our Milk Supply Partners, supporting sustainable milk production and building long-term value for farming families and regional communities.”

Burra Foods said it would continue to offer support measures for suppliers, including options designed to assist with farm cashflow and seasonal planning.

The company also noted that recent autumn conditions had supported stronger milk volumes, while acknowledging the ongoing pressures facing dairy farmers and the volatility in global dairy markets.