WA dairy farmers concerned by the widening gap between WA milk prices and those of comparable regions

WA dairy farmers continue to fear for the future of their industry as milk prices continue to track below other comparable dairying regions in Australia. According to data from Marsden Jacob Associates, the gap continues to widen between WA dairy prices and those of northern Victoria, New South Wales and Queensland. WA farmers have argued they are price takers, with no choice but to accept that their quality milk has been and will continue to be undervalued in the local domestic market. In the 2025-25 financial year, only one of three major WA dairy processors — Brownes, Lactalis and Bega — raised their milk price marginally, compared to the Eastern States where nearly all processors announced a slight increase on last year. Margaret River dairy farmer Tim Garstone said he didn’t believe WA dairy farmers would ever see an improvement in price. “We get just enough to keep us treading water,” he said. “If there was value in the milk, we’d see continued investment and new entrants into the industry . . . we’re just not and are unlikely to ever see it now.” Mr Garstone said processors needed to extract more money from the domestic market if farmers were ever going to experience long-term sustainable prices. “I think the industry is going to fall off a cliff in the next five years,” he said. “There’s got to be reward for effort.” WA currently faces an exodus of next generation farmers who are finding little to gain from the dairy industry. Increasing input costs and marginal financial incentive are driving this trend. WAFarmers Dairy Council president Ian Noakes said WA dairy processors needed to play their part in keeping the industry sustainable in the long-term instead of hamstringing suppliers. “They’re worried about getting too much milk, so they use the price to try and balance milk production,” he said. “Which, if they get it wrong, which they do regularly, farmers leave the industry, milk productions goes down.” Mr Noakes said he believed if there was a way of maintaining production at a certain level, companies would pay more. “That’s certainly something we need to be looking at in Western Australia,” he said. In the past, surplus milk would go to manufacturing facilities to be turned into products such as ice-cream. Now, more than 85 per cent of WA’s production is direct sales in the fresh product market after major facilities were sold off. “There were tumultuous times in the industry maybe 10 years ago . . . ice-cream was a big part of Brownes and they sold those brands off to other companies over east who are now making a lot of money out of producing ice-cream — it was a short-sighted decision,” he said. Mr Noakes said processors have also made it difficult for the manufacturing market to succeed or even re-establish. “A lot of small producers that manufacture like Harvey Cheese and Jay’s Dairy and a few others are really struggling because they can’t get a milk supply,” he said. “All of us suppliers are signed up on exclusive contracts and they’re not letting milk go to keep these guys in business. “It’s a serious issue that has to be confronted and we’re trying to but it’s not that easy.”