Norco CEO Michael Hampson says his company will impose a five cent per litre increase to its farmgate milk price from May 2026, ‘which will deliver an additional $1 million per month to farmers as rising input costs continue to place significant pressure on the sector’.
The expected cost to consumers will be around 30 cents per week for households.
Hampson says, ‘With farmers facing unprecedented increases in fuel, fertiliser and freight, the move is a necessary step to support farmer viability – while signalling further increases may be required as cost pressures continue to build’.
He says that as Australia’s oldest and last operating 100% farmer-owned dairy cooperative, ‘every cent of its increase is being returned directly to farmers and their regional communities’.
Further increases may be needed
‘Norco signals further increases may be needed as cost pressures continue to build Monday, April 20, 2026.
‘Ongoing geopolitical uncertainty is placing sustained pressure on the sector, with fuel and fertiliser shortages driving sharp increases in input costs for farmers, and across the entire supply chain’.
Hampson says, ‘These cost increases are unprecedented. Our farmers are paying double for diesel, triple for fertiliser and 40 per cent more for freight. These pressures are simply unsustainable without meaningful support across the supply chain – and this price increase is a small but important step in helping to offset those pressures.
‘Right now, farmers critically need these increases to remain viable and protect their livelihoods – that’s the sheer reality of the situation.
‘This is not about increasing margins – it’s about ensuring the sustainability of our farmers and the future of the Australian dairy industry.
‘Hampson added that these pressures are expected to curb winter planting of hay and cereal crops, which will significantly reduce supply and push input costs even higher again toward the end of the year for dairy farmers.
‘These cost pressures are unlike anything we’ve ever seen before, and without industry-wide action to better support farmers, the future of the sector is at real risk,’ he said.
‘We’re incredibly grateful for that support and the understanding from Australian consumers. It might seem like a small change at the checkout, but it makes a real difference on farm and helps us keep going,’ he said.
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