PROGRESSIVE Northern NSW dairy co-operative Norco has lifted its base milk price to suppliers by an average of three cents per litre on the back of securing a long-term supermarket contract and tapping into new export opportunities.
The increase will be paid from July 1.
Norco’s chief executive officer Brett Kelly said the business would start supplying a major Coles contract from July and to cope with the volume, would be looking to existing members to increase their production along with welcoming new supplying farms, predominantly from south east Queensland.
Come July, Norco will have in excess of 200 milk supplying farms producing more than 200 million litres annually.
The farmgate price lift also aimed to encourage more supply to the burgeoning fresh milk to China market, according to the co-operative.
Norco chairman Greg McNamara said the co-operative wanted to send a clear signal to members that their milk was valued “and we will do everything in our power to ensure there is a sustainable dairy industry into the future”.
“Our farmers have endured some tough conditions of late with a drought and increasing input costs and so we hope this uplift in price gives them confidence for the future,” he said.
“It is vitally important our members are engaged with the co-operative due to the exciting opportunities that are on the horizon.”
Source: Queensland Country Life