Norco dairy farmers are to receive an immediate price increase of five cents a litre to support them in farm production after the floods.
Norco Co-operative’s 281 members will receive the extra five cents a litre paid as a co-operative premium above the normal milk prices, taking the average price to 84c a litre.
This increase adds up to a $1.6 million cash injection towards supporting Norco’s farmer base following an exceptionally difficult period of production.
Further price increases will be announced by June 1.
Norco chief executive Michael Hampson said it had been an especially difficult time for their farmer members who have faced unprecedented challenges as a result of the recent natural disasters across Northern NSW and Southern Queensland, combined with rapidly increasing cost of production.
“Following the floods, many of our farmer members have repair costs in the tens of millions,” Mr Hampson said.
“This follows periods of rising operating costs and decreased production due to the significant and prolonged weather conditions which has placed added cash flow pressures on our members.”
Mr Hampson said that while their primary focus is to provide support to their farmer members, the co-operative remains equally committed to safeguarding the future of the Australian diary industry.
Consumers may see a slight price increase when buying Norco, but they can be assured that every single cent goes back to helping our farmers rebuild, he said.
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