Prices increased for dairy farmers, as more leave the industry

As drought worsens in New South Wales and Queensland, a dairy processor has increased prices in an effort to keep farmers in business.

Norco has seen it’s milk pool shrink in the past 18 months.

12 farmers have left the industry.

Chairman Greg McNamara told Macquarie’s Rural Reporter Eddie Summerfield, there could be more if there’s not substantial rain soon.

“We expect there could be another 20 lost to the industry in South East Queensland, and Northern New South Wales, so the pool is shrinking.”

The processor has been in negotiations with retailers to increase prices, that’ll see farmers paid an additional four cents per litre.

“The retailers right across the board have supported us to actually take a price increase, I think they understand it’s just not dairy and fresh milk that’s struggling with the drought, this has been going on for at least two years now.”

He says the price increase has been well supported by consumers, who are more supportive of the damage low prices and the drought is doing for the sector.

“It’s increased in excess of ten cents per litre on opening prices two years ago, so it’s getting into the pricing to create sustainable farming.”

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