No relief in sight with opening milk prices for 2025-26

The South Australian Dairyfarmers' Association (SADA) has today expressed concern over the milk prices announced by major processors for the 2025–26 financial year.

While a handful of local processors have maintained healthy pricing, SADA is concerned that the very modest increases offered by many major processors will not address the significant increases in feed and business costs experienced by all dairy farmers in this time of severe drought.

“Maintaining a fair and sustainable farmgate price is essential to ensure farmers can continue producing high-quality milk without threatening their viability.” said SADA President Robert Brokenshire

“While we recognise that all stages of the supply chain are experiencing increased cost pressures, we’re calling on processors and retailers to reassess their opening prices over the coming weeks. Without sustainable farmgate prices, processors risk losing access to local milk supply—and without that, they don’t have a business either.”

Mr Brokenshire added that 2025 has already proven to be one of the most challenging years on record for dairy farmers. “The ongoing effects of inflation, particularly on input prices, have made the business environment more difficult. When combined with the driest two years on record in most dairying regions, the situation has become dire for many of our farmers.”

SADA urges a more collaborative approach between farmers and processors to address these challenges. “Working together, we can develop innovative solutions to improve efficiency, reduce costs, and enhance product value.”

Under the Dairy Industry Code, all medium to large dairy processors are required to publish their milk prices and contracts for the upcoming financial year by 1 June annually. As 1 June fell on a weekend in 2025, announcements were made on Monday, 2 June. The Australian Competition and Consumer Commission (ACCC) is responsible for ensuring compliance with this code.