Dairy Co-op lifting ‘base milk price’ to help struggling farmers

A major milk supplier has decided not to wait around for the Government to jump through hoops to impose a ‘milk levy’ to help struggling dairy farmers.

Norco is instead introducing its own measure, which is expected to inject “approximately $1.8 million” into the pockets of its members’ businesses.

The farmer owned dairy co-operative, which is based in Lismore in northern NSW, is lifting the base milk price by five cents per litre for the remainder of September and October.


“Our overarching priority is to protect the long term interests of our Members and we must take immediate action now,” Norco Chairman Greg McNamara said in a statement on Friday.

Mr McNamara explained that a community push for the Government to introduce a ten cent per litre levy is “founded with the best intentions”, but Norco’s Board believes their dairy farmer Members can’t wait for that to be put into action.

“We are concerned that the proposed levy may be seen as a temporary measure, rather than an embedded increase in the farm gate milk price to address the escalating costs of production and that once the drought breaks, the levy could simply fall away,” Mr McNamara said.

“I am very pleased to announce that we are increasing the base milk price by five cents per liter for the months of September and October.

“This increase alone will inject approximately $1.8 million over the two month period into our Members’ businesses.”

Norco’s ability to keep paying the increased milk price will be reviewed at the end of October.