How can farmers afford to be paid only $1 per litre for milk?
The direct impact of $1 per litre milk on dairy farmers is hard to quantify due to the lack of access to data relating to processor/retailer profit margins.
Last updated 17/01/2024
Seeing price cuts and products sold at low prices in supermarkets can seem like farmers must be getting a raw deal, especially when so much effort and skill goes into producing safe, fresh, quality milk on our shelves. Unfortunately, it’s not that simple.
The price a farmer gets for their milk is based on the fat and protein content (collectively called ‘milk solids’) and the milk price established by the processor.
The ACCC has reviewed the direct economic impact of $1 per litre milk on farmers and has been unable to quantify an impact due to the lack of access to data relating to processor/retailer profit margins.
However, it is widely recognised that processor margins are better for branded product, compared to private label equivalents which would in-turn impact the money flowing back into the supply chain.
By choosing Australian milk and other Australian dairy products, preferably branded, you’ll help support Australian farming families and dairy communities.
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