Norco milk announced to its suppliers that it will hold the same prices for the year 2017/18 as it did for the previous year 2016/17. This is a great outcome for Norco suppliers and the industry in Queensland in the context of prices for other dairy farmers throughout Australia.
There has been no change to the base milk rates for Queensland’s Northern Region with the cents-per-litre rate at an estimated total average of 57.22 versus the 2016/17 forecast of 57.14.
There is an increase in the Fat Component Penalty Rate from 0.465 cents-per-litre to 0.500 cents-per-litre for each 0.10% deviation in milk fat percent from 3.95%. There has also been an increase in Quality Penalty for Standard Plate Count (SPC) greater than or equal to 20 when the Bulk Milk Cell Count (BMCC) is greater than 300. There is no change to the Protein Component Penalty Rates.
Certainly, Norco’s commitment to hold prices for 2017/18 is good news for the entire Queensland industry and will certainly keep pressure on other processors to hold their farm gate price.