Norco raises farm gate milk price by 2 cents
An increase in consumer demand for fresh milk, cream, cheese, custard, butter, ice cream and flavoured milk has seen Norco increase its farm gate by two cents to 77 cents per litre.
The move by Australia’s oldest dairy co-operative means the price rise will see suppliers receive an average of slightly over 70 cents across the full year as the two cents to 77 cents per litre will continue for six months to June 30.
The increase delivers an additional $2 million to co-operative in additional payments from the co-operative.
Norco Chairman Michael Jeffery said the continued strong results were a direct result of consumers continued commitment to supporting the 297 members in NSW and Queensland.
Mr Jeffrey said Norco has once again defied the economic uncertainty of COVID-19.
He said the result comes off the back of a record financial year where the co-operative posted an operating profit of $5.4 million for FY19-20, up from $1.2 million the previous financial year.
“I am pleased to say that we continue to be able to support our farmers with strong payments,” he said.
“It’s a credit to our loyal consumers who purchase Norco branded products and the co-operative's management team who continue to drive activities in the business that allow us to provide additional payments to our farmers such as these.”
Mr Jeffrey said the additional farm gate increase is a welcome result for the co-operative’s 297 farmer members who also benefited from a rise in milk payments during FY19-20, with each member sharing in $17.1 million of much needed farm gate milk price increases.
This compared to the previous financial year as they continued to recover from the crippling effects of drought and high costs of production.
“Our management team, led by chief executive Michael Hampson, continue to rollout improvement activities and programs that are transforming the Norco business daily,” he said.
“It’s these activities and the teams’ commitment to delivering these that help provide significant benefits to our farmer members”.
Mr Jeffrey thanked consumers for helping to sustain the Australian dairy industry.