MEDIA RELEASE
26 May 2025
Dairy Farmers Victoria: $8.60 Milk Price From Fonterra Too Low Amid Ongoing Crisis
Dairy Farmers Victoria (DFV) has responded with disappointment to Fonterra’s opening farmgate milk price announcement of $8.60/kgMS for the 2025/26 season, stating the figure falls short of what is needed to sustain farmers through one of the most challenging periods in recent memory.
DFV President Mark Billing said the opening price does not reflect the reality on the ground for Victorian dairy farmers grappling with prolonged dry conditions, skyrocketing input costs, and shrinking margins.
“We recognise Fonterra’s attempt to provide price certainty early, but $8.60 simply does not meet the needs of farmers facing feed shortages, high energy prices, and financial pressure,” Mr Billing said.
“Many farmers are being forced to de-stock or exit the industry altogether. This price will not turn that around.”
DFV is calling on all processors, including Fonterra, to revisit their pricing models and deliver an opening milk price that genuinely supports the viability of Australian dairy farms.
“We need opening prices that reflect the true cost of production in 2025 — not just signals to the market. The days of pricing to the average are over. Our farmers deserve better.”
DFV continues to advocate for a sustainable, profitable future for Victorian dairy and urges the Federal and State Governments to monitor processor behaviour closely and consider additional supports for farmers during this period.