March 27, 2026
eastAUSmilk says the ongoing conflict in the Middle East is causing chaos in the industry which will put pressure on supermarket milk prices.
The industry body, which represents dairy farmers in Queensland and NSW, has called for an immediate increase in prices paid by dairy processors to farmers.
President Tim Bale said the cost of two major inputs for dairy farms – fuel and fertiliser – had gone up by unprecedented levels.
“The cost of urea has gone from $800 to $1800 in the past month. Price increases of this level have never happened before,” Mr Bale said.
“The price for diesel is now over $3 per litre compared to under $2 per litre just weeks ago.
“Cost increases of this magnitude cannot be absorbed by dairy farmers. Farmers will cut back production or exit the industry over the coming months if something isn’t done immediately.
“We strongly encourage all milk processors to immediately negotiate with their customers, including major retailers, to adjust prices to reflect the cost increases felt by both farmers and processors.
“We want to see dairy farmers, processors and retailers all receive a fair increase in price to reflect the massive escalation in input costs that they are facing.
“We cannot afford to wait until new contracts in July.
“The current price of store brand milk is $3.30 for two litres. It is unfathomable to see how any milk could sell for less than $4.00 for two litres given the current cost increases.”
