Norco has announced a five-cent per litre increase in its farmgate milk price in response to rising fuel, fertiliser, and freight costs linked to global disruptions.
The cooperative said the price adjustment, which will take effect next month, is essential to help farmers manage escalating production expenses across northern New South Wales and south-east Queensland.
With the increase, the average farmgate milk price will rise to around 97 cents per litre. Norco noted that the impact on consumers would be modest, adding roughly 30 cents per week to an average household’s grocery bill.
Chief Executive Michael Hampson described the cost pressures as unprecedented, highlighting that farmers are paying significantly more for diesel, fertiliser, and freight. He emphasised that the increase is necessary to sustain farming operations rather than boost profits.
The move comes amid broader calls from the dairy industry for major retailers to raise prices on their own-brand milk products to better support farmers.
Tim Bale warned that without immediate action, many farmers may be forced to reduce production or leave the industry due to soaring input costs, including a sharp rise in fertiliser prices.
Norco also indicated that further price increases may be unavoidable if cost pressures persist, particularly as upcoming winter feed crop production faces similar global challenges.
