Milk price transparency for farmers
• Jersey cows at West Scottsdale.
By Daisy Baker
November 25, 2020
It’s hoped a new online resource for dairy farmers will provide greater transparency around farmgate milk prices.
The Milk Value Portal was launched by the Australian Dairy Products Federation (ADPF) at the end of last week with the support of dairy processors.
The portal provides a place for farmers and industry observers to get comprehensive information about Australian farmgate milk pricing and the value of raw milk, at a specific time of the year by region and key production parameters.
Website users can select a region, farm size, milk components (fat and protein content) and seasonal supply curve and then view the weighted average value of raw milk in cents/ litre or $/kg of milk solids, for a particular time of the year.
TFGA Dairy Council chairman and Ringarooma dairy farmer Geoff Cox said it will be a useful tool, helping farmers better understand factors affecting their milk price, the market and where their price is in comparison to other regions.
“It’s been developed by ADPF and the key reason is to build trust and build a relationship between farmers and processors,” he said.
“It’s demystifying the complexity of milk price and it is current information as well so it’s updated as things change.
“It will provide farmers with a chance to be more informed about why their milk price is what it is and in some ways where it’s headed.”
Events in recent years have resulted in a breakdown of trust between farmers and processors.
This new resource addresses one of the commitments of the Australian Dairy Plan, restoring trust and transparency between farmers and processors to strengthen industry confidence.
The Australian Dairy Products Federation president Grant Crothers says that the new tool marks a turning point in farmgate milk pricing transparency.
“Farm gate milk price is more complex than we would like, and many industry participants aren’t aware of the different factors that make up the market for milk at farmgate, resulting in business planning challenges,” he said.
“The Milk Value Portal is designed demystify and provide a deeper understanding of what farmgate milk price is and the key drivers.
“Through the Australian Dairy Products Federation, processors are providing uniquely insightful data that delivers a deeper understanding of farmgate milk prices so that dairy farming enterprises can make better business decisions,” Mr Crothers said.
You can visit the Milk Value Portal at www.milkvalue.com.au