Australian Dairy Farmers said temporary measures announced by Woolworths and dairy processor Lactalis Australia would offer some short‑term relief, but fell short of addressing the financial pressure facing most dairy farmers.
The measures include a retail‑linked milk price increase for Woolworths’ own brand suppliers and a five‑cent‑per‑litre farmer support payment from Lactalis.
French company Lactalis recently acquired Fonterra’s Australian operations for $3.4 billion, making it the largest dairy product corporation in the country, and the largest distributor in the world.
ADF president Ben Bennett said the announcements were positive, but limited in scope.
“These measures are welcome and provide important short-term support, but they do not yet deliver the long-term pricing outcomes all dairy farmers need,” Mr Bennett said.
He said the Woolworths pricing adjustment would only benefit a small number of farmers supplying into specific contract pools, leaving the majority of producers unaffected.
“Retail-led increases are often tied to particular supply arrangements, and in this case, only a relatively small group of farmers will see a direct benefit,” he said.
Mr Bennett also cautioned that the Lactalis payment was a temporary initiative rather than a permanent improvement to farmgate prices.
“The Lactalis initiative provides valuable short-term relief, but it is not a structural price step-up,” Mr Bennett said.
“Farmers need confidence that improved pricing will be sustained into the future.” said.
Many dairy farmers across northern Victoria continue to feel the squeeze from rising input costs, including fuel, fertiliser and feed, placing ongoing pressure on margins as the new season approaches.
Mr Bennett said stronger action was needed across the supply chain, particularly from retailers.
“If we are serious about maintaining Australian milk production, retail pricing must better reflect the real cost of producing and processing milk,” he said.
“There is a shared responsibility across processors and retailers to ensure that value is returned through the supply chain in a way that supports farmers.”
ADF is calling for sustainable farmgate pricing that reflects the cost of production, greater transparency in value flows, and stronger pricing signals to support farmer confidence and investment in regional dairy communities.
“Short-term support helps, but what farmers ultimately need is long-term pricing certainty and a fair return for the milk they produce.”
