Milk Value Portal will help farmers understand pricing process

The new Milk Value Portal will help dairy farmers to understand the weighted average raw milk value as it provides answers to the complex question of how milk price is determined.

The portal has been developed by the Australian Dairy Products Federation and is based on aggregated farmgate milk price data provided directly from dairy processors, with support from Dairy Australia.

It will give Dairy farmers greater transparency of how the farmgate milk value has been arrived at, as it takes into account the many factors that shapes the raw milk price outcome.

Some industry sectors have welcomed the portal and said it would give farmers greater knowledge of farm gate milk value and what drives changes in raw milk value.

The Australian Dairy Products Federation was behind the launch of the portal, as it is being touted as another innovative example of ag technology helping farmers build better businesses.

Armed with this additional knowledge it will be an important resource for dairy farmers to better understand the many factors affecting farmgate milk prices and help contribute to their business decisions, such as when their next milk supply agreement is up for negotiation.

The interactive Farmgate Milk Value Tool in the portal will enable dairy farmers to assess the current value of their raw milk based.

This will be based on location, farm size, seasonal milk supply pattern and expected butterfat and protein content for both the current and previous year – in cents per litre or $/kg of milk solids.

It is expected the portal will generate a weighted average farmgate milk value for similar farms, for a particular time of the year.

The portal will demonstrate how changes of seasonality supply, different butterfat and protein results could affect raw milk prices, as well as featuring a range of information on global market influences and insights to complete the picture.

However, the portal is not designed to be a ‘click and compare’ and won’t give individual farmgate milk prices available from processors, or a specific milk price offer, as these still need to come directly from your processor.

But what is expected is that the portal will be the next step of increased transparency measures for dairy farmers. It complements the mandatory Dairy Code and provides more information to farmers to help with business decisions.

What is important is for dairy businesses to have access to information to create a stronger market environment with better regulation, healthier market competition, and more competitive supply chains.

You can log onto the Milk Value Portal at or by visiting the Dairy Australia website at

How the Farmgate Milk Value Tool will work

·        Using the interactive Farmgate Milk Value Tool available on the Australian Dairy Product Federation Milk Value Portal, Dairy farmers can see average values of raw milk using conditions that are similar to their farms (such as geography, farm size, milk components (fat and protein content) and seasonality.

·        The ACCC is responsible for enforcement of the mandatory Dairy Code. It has published information, including a fact sheet for farmers, to help ensure all parties understand their rights and obligations.