FY27 milk prices highlight strength of SA dairy processing

The South Australian Dairyfarmers’ Association says the opening milk prices announced for the 2026–27 season provide a steady starting point, while highlighting the strength and diversity of South Australia’s dairy processing sector.

SADA President Robert Brokenshire said the prices should be seen as the beginning of the negotiation period, not the final word.

“These prices give farmers a starting point, but they must be measured against the real cost of producing milk in South Australia,” Mr Brokenshire said.

“Feed, water, fuel, fertiliser, labour, energy and freight remain significant pressures. The opening prices are welcome, but we recognise that processors are experiencing the same challenges.

Mr Brokenshire said South Australia was well placed because of its diverse processing sector, which includes national processors, regional businesses, specialist cheese and yoghurt makers, organic and biodynamic brands, and premium local dairy companies.

“That diversity creates options for farmers, supports regional jobs and builds value in South Australian milk,” he said.

“From the South East to the Fleurieu Peninsula, the Adelaide Hills and the Murraylands, our farmers supply milk into a processing sector that continues to invest, innovate and build trusted brands.”

SADA said strong processors and sustainable farmgate prices must go hand in hand.

“The long-term strength of processing depends on the strength of the farm businesses that supply it,” Mr Brokenshire said.

“Farmers will now be looking closely at base price, incentives, quality requirements, collection arrangements, risk and contract terms.

“The headline price matters, but so does the full value and fairness of the agreement.”

SADA said the FY27 pricing round also reinforced the importance of South Australians supporting local dairy products.

“When consumers buy local dairy, they support family farms, regional jobs, local processing and the broader food manufacturing sector,” Mr Brokenshire said.

“South Australia has a dairy industry to be proud of. The challenge is to ensure value is shared fairly and transparently through the supply chain.”

ENDS