Dairy farmers have warned new farmgate prices for milk will fail to cover the cost of production for many NSW dairies. 

NSW processors have now announced opening milk prices for the 2025-26 season, with prices ranging from $12.30/kg MS (94c) in the north of the state to $9/kg MS in southern NSW for the year ahead. 

While these prices would have delivered reasonable returns in seasons past, NSW Farmers Dairy Committee Chair Mal Holm said record floods and skyrocketing input costs meant prices would ultimately fail to keep many farmers in business this year.

“These latest floods might just be the last straw for many farmers who were under enormous strain thanks to the huge cost of production,” Mr Holm said.

“The cost of producing milk is only going up, while milk prices remain down, and proper disaster assistance is still nowhere in sight to get farmers back on their feet after a string of horrific floods. 

“It’s forcing family farmers out the door after generations in the game, and it’s time we stood up and said we need stronger prices for a stronger industry.” 

As farmers looked to the season ahead, Mr Holm warned the future of the industry hinged on stronger prices for its farmers. 

“Australian dairy farmers have delivered families milk, cheese, butter, yoghurt and ice cream for decades, it’s a proud tradition and an important part of our food supply,” Mr Holm said. 

“Dairying is a tough job – now, more so than ever – and while the supermarkets are pushing their profits up, they’re not interested in delivering returns to the farmers that work so hard to produce this great product.

“Milk prices must provide reasonable returns to dairy farmers, so we don’t lose our local milk production to cheap imports. Aussie families deserve Aussie dairy, and nothing less than that.”