{"id":394124,"date":"2026-04-15T21:50:39","date_gmt":"2026-04-15T21:50:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/394124\/"},"modified":"2026-04-15T21:50:39","modified_gmt":"2026-04-15T21:50:39","slug":"supermarket-milk-price-rises-predicted-as-dairy-farmers-battle-war-related-cost-increases","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/394124\/","title":{"rendered":"Supermarket milk price rises predicted as dairy farmers battle war-related cost increases"},"content":{"rendered":"

Supermarket milk price rises caused by the Iran war are predicted in the coming months as hundreds of dairy farmers battling increasing costs receive more for their product.<\/p>\n

Woolworths is paying an extra 10 cents a litre to fewer than 20 farmers who it deals directly with for its Farmers’ Own brand.<\/p>\n

\"Bottles<\/p>\n

Farmers’ Own milk on the bottom shelf at Woolworths Maroochydore. (ABC Rural: Jennifer Nichols)<\/p>\n

Australia’s largest dairy company, Lactalis, will increase milk payments by five cents a litre to more than 800 farmer-suppliers from May 1, Australian Dairy Farmers (ADF) confirmed.<\/p>\n

ADF said the increase was equivalent to about 64 cents a kilogram of milk solids.<\/p>\n

\"A<\/p>\n

The Farmers’ Own milk is collected by the same tanker. (ABC Rural: Jennifer Nichols)<\/p>\n

Milk cooperative Norco has confirmed it will increase prices for its 190 farmer-shareholders and charge retailers more, with details to be announced after a board meeting later this month.<\/p>\n

Coles has advised about 100 farmers who supply it directly that it is looking into pricing.<\/p>\n

\"A<\/p>\n

Lucas Kennedy cleaning his dairy yards. (ABC Rural: Jennifer Nichols)<\/p>\n

Tough times<\/p>\n

On a misty morning at Conondale, two hours’ drive north-west of Brisbane, the impacts of the Iran war are no longer a world away for Lucas Kennedy.<\/p>\n

Costs have increased for fuel, grain, freight and fertiliser.<\/p>\n

\"Signs<\/p>\n

The cows are milked in the early morning and afternoon. (ABC Rural: Jennifer Nichols)<\/p>\n

Mr Kennedy said the price of his next order of urea would rise from $750 to $1,400 a tonne, and he was concerned about securing future deliveries.<\/p>\n

The 58-year-old produces between 2.5 and 3 million litres of milk a year from 350 cows and welcomed the price increase from Woolworths.<\/p>\n

\"Black<\/p>\n

The cows bring themselves to the yard for milking. (ABC Rural: Jennifer Nichols)<\/p>\n

“We’ve been with them [Woolworths] for nearly 11 years, and it’s definitely made a massive difference to our business in regard to investing in it,” Mr Kennedy said.<\/p>\n

“If we can get support to get through these times without having to yell and debate and do whatever else, that says, ‘Yes, milk’s valuable.'”\"A<\/p>\n

Lucas Kennedy works 12 hour days and is passionate about dairying. (ABC Rural: Jennifer Nichols)<\/p>\n

Call for price rises to be permanent<\/p>\n

ADF president Ben Bennett said supermarkets needed to be proactive and increase milk prices on the shelves.<\/p>\n

“I think prices will inevitably go up \u2014 it’s simply supply and demand,” he said.<\/p>\n

Mr Bennett welcomed the promised Lactalis payment but was concerned about it being a temporary measure.<\/p>\n

\"A<\/p>\n

Ben Bennett says prices must rise. (Supplied: Rick Bayne)<\/p>\n

“This is a significant cash injection into the industry and gives them a bit of hope and a bit of certainty,” he said.<\/p>\n

“Our new [contract pricing] season is going to start on the first of July, so we need to ensure that this is a starting point.”<\/p>\n

\"A<\/p>\n

Dairy farmers have to be multiskilled. (ABC Rural: Jennifer Nichols)<\/p>\n

Mr Bennett said consumers needed to understand the work that went into producing milk, which was considerably cheaper than sugary soft drinks.<\/p>\n

“We’re still one of the cheapest places for liquid milk in the world, but we’ve got some of the biggest first-world costs,” he said.<\/p>\n

\"Black<\/p>\n

Cows graze in lush misty paddocks at Conondale. (ABC Rural: Jennifer Nichols)<\/p>\n

Will consumers pay more?<\/p>\n

Advocacy group eastAUSmilk, which represents farmers in Queensland and New South Wales, is pushing for supermarket prices to be increased by 30 cents a litre, with 15 cents for farmers and the rest for processors.<\/p>\n

But president and Farmers’ Own supplier, Tim Bale, said Woolworths had told him it would absorb the extra 10 cents it was paying to its direct suppliers, rather than pass it on to consumers.<\/p>\n

\"A<\/p>\n

NSW dairy farmer Tim Bale was elected president of eastAusmilk in 2026. (ABC Rural: Jennifer Nichols)<\/p>\n

“We’re getting mixed messages that it [the brand] may not survive,” Mr Bale said.<\/p>\n

“At the same time, they just pushed our contract out for another year and then offered this.”<\/p>\n

Woolworths and Lactalis declined ABC Rural’s requests for comment.<\/p>\n

In a statement, Coles acknowledged the “upward pressure” on agricultural expenses, including fuel and fertiliser.<\/p>\n

“We work with our long-term, direct suppliers, including Australian farmers, to manage cost pressures, support continuity of supply, and smooth the impact on consumers,” the spokesperson said.<\/p>\n

“We are committed to striking a balance between supporting suppliers and continuing to provide\u202fvalue to our customers.”Norco will raise prices<\/p>\n

Norco general manager Michael Hampson said the 100 per cent farmer-owned cooperative would announce price rises for its 190 shareholder\/suppliers after a board meeting late this month.<\/p>\n

\"A<\/p>\n

Michael Hampson says prices will increase for farmers and consumers. (ABC North Coast: Leah White)<\/p>\n

Mr Hampson said the price rises would be passed on to retailers.<\/p>\n

“We can’t expect farmers to go broke so that we can continue getting cheap milk as a country.<\/p>\n

“At the end of the day, the milk price needs to go up.”<\/p>\n

\"Milk<\/p>\n

Sourcing resin for plastic milk bottles is becoming a problem. (ABC News: Charlie McKillop)<\/p>\n

Packaging costs soar<\/p>\n

Mr Hampson said the biggest challenge was the cost and availability of resin to make plastic bottles and packaging.<\/p>\n

“For milk bottles, it used to be $1,200 a tonne. We’re looking now for May\/June shipments to be $3,500 a tonne, if it’s available,” he said.<\/p>\n

“Everyone’s worried about diesel, everyone’s worried about fertiliser.<\/p>\n

\"The<\/p>\n

A robot moving bottles in the cold room at Maleny Dairies, November 2019. (ABC Rural: Jennifer Nichols)<\/p>\n

“We need to worry about how we’re going to package the food that the farmers make because if we can’t, there’s no point making it.”<\/p>\n

That concern is shared by family-owned independent processor Maleny Dairies, which makes bottles on site, at its Sunshine Coast hinterland factory.<\/p>\n

\"A<\/p>\n

Ross and Sally Hopper don’t plan to increase prices at Maleny Dairies. (Supplied: Maleny Dairies)<\/p>\n

Co-owner Sally Hopper said it was a juggling act, but the company was absorbing rising input costs.<\/p>\n

Ms Hopper said at this stage they were not looking to increase milk prices to supermarkets or their 13 farmer suppliers, who already received above-average milk prices.<\/p>\n

\"Cows<\/p>\n

Maleny Dairies is supplied by 13 farms. (ABC Rural: Jennifer Nichols)<\/p>\n

“We pick up their milk for free and pay for the fuel. We have our own trucks, so in a way, they are already better off.<\/p>\n

“It also comes down to what people can afford.<\/p>\n

“Everyone’s in it. Nobody can avoid this. It’s just this vicious cycle.”<\/p>\n","protected":false},"excerpt":{"rendered":"Supermarket milk price rises caused by the Iran war are predicted in the coming months as hundreds of…\n","protected":false},"author":2,"featured_media":394125,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[187360,114,184,85,117780,46,187358,187359,187357,187356],"class_list":["post-394124","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-australian-dairy-farmers","tag-business","tag-economy","tag-il","tag-iran-war","tag-israel","tag-milk-price-aldi","tag-milk-price-australia","tag-milk-price-coles","tag-milk-price-woolworths"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/394124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=394124"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/394124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/394125"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=394124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=394124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=394124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}