How can farmers afford to be paid only $1 per litre for milk?
The direct impact of $1 per litre milk on dairy farmers is difficult to quantify because there’s limited data on processor and retailer profit margins.
Last updated 30/01/2025
Seeing milk sold for just $1 per litre in supermarkets can make it seem like farmers are getting a raw deal, especially when so much effort and skill goes into producing safe, fresh, and quality milk. But, unfortunately, it’s not that simple.
The price a farmer gets for their milk is based on the fat and protein content (collectively called ‘milk solids’) and the price set by the milk processor. The Australian Competition and Consumer Commission (ACCC) reviewed the economic impact of $1 per litre milk on farmers, but due to a lack of access to data on processor and retailer profit margins, they couldn’t quantify the direct effect.
However, it's widely acknowledged that processors earn better margins on branded products compared to private label equivalents, which in turn affects how much money flows back through the supply chain.
By choosing Australian milk and other Australian dairy products, preferably branded, you’ll help support Australian farming families and dairy communities.
References
Was this useful?
Thank you for your feedback