Norco Co-operative increases milk price for May and June
Norco Co-operative has announced a milk price increase for May and June 2022, which will see $1.6 million go to its farmer base following a period of difficult, lower production.
Norco’s 281 active members will receive an extra five cents per litre of milk, bringing the average price up to 84 cents a litre. Natural disasters in Northern NSW and Southern Queensland alongside increasing costs of production have meant farms have seen a difficult period, which the higher price is meant to address.
“We are constantly looking at ways to increase the milk price for our members and industry at large and given the devastating impact of recent weather events on the Norco supply base, there has never been a more important time to deliver this support to farmers,” said Norco Chief Executive Michael Hampson.
“Following the floods, many of our farmer members have repair costs in the tens of millions. This follows periods of rising operating costs and decreased production due to the significant and prolonged weather conditions which has placed added cash flow pressures on our members.
“As a business, we know firsthand the challenges faced following natural disasters, so remain wholly committed to doing everything we can to support our farmers during this period and beyond.”
In the past three seasons Norco has committed to increased farm gate prices that are above the June/July opening price and its closing prices have been above initial opening offers too.
The dairy co-operative is working to extend financial support to farmers in the recovery process, something that expected future price increases will help with, in order to ensure the viability of dairy farming for its members. Norco is currently exploring further price increases for the 2022/23 financial year, which would be announced on or before 1 June.
The price increase may result in consumers paying slightly more for their milk but Norco points out this increase will help farmers to rebuild after a trying time.
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