An additional $2 million will go into the pockets of Norco milk suppliers for the six months to June 2021, with the co-operative announcing a farmgate price increase of two cents a litre.
The increase brings the average price across all supply to 77c/L and comes off the back of a record 2019-20 financial year, where the co-operative posted an operating profit of $5.4 million, up from $1.2m the previous financial year.
It's a welcome reprieve for the co-op's 297 farmer members in south east Queensland and on the north coast of NSW as they continue to recover from the crippling effects of drought and high production costs.
For the Mullins family at Allora, the price increase is a kickstart to getting their business back on track after drought.
"After the past couple of years, it's been a costly exercise maintaining milk production and cow body condition so every little bit that we can get now will help us get back to where we should be," Chris Mullins said.
"We usually like to have 18 months to two years of stored feed ahead of us which is where we were a couple of years ago, but we chewed into that and got down to low stocks of feed.
"We were bringing in a lot of feed in the past 12 months, so it's just trying to get back to a situation where we're growing our own feed and milk prices are a bit more profitable then."
While the price increase is welcome, some within the industry have cautioned that prices need to be sustainable, pointing to failed Victorian dairy enterprises from the giant Murray Goulburn to the tiny True Organic and Freedom Foods as examples of failed sustainability.
But Mr Mullins said they are positive about the future of Norco, given the strong position the co-op is currently in.
"I think the board does a really good job of cautiously looking at anything like that before they make the decision to do anything price wise; they don't just throw money about because they've got it at the moment without considering what the future is going to hold," he said.
"I think they realise how tough the suppliers have been doing it and every little bit they can get to us helps us, help them."
Norco chairman Michael Jeffery said the continued strong results were a direct result of consumers' continued commitment to supporting the 100pc Australian farmer owned co-op.
"I am pleased to say that we continue to be able to support our farmers with strong payments and 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 Jeffery said.
"Our management team, led by chief executive Michael Hampson, continue to roll out improvement activities and programs that are transforming the Norco business on a daily basis. It's these activities and the team's commitment to delivering these that help provide significant benefits to our farmer members."
Mr Hampson said they were committed to building the sustainability of the industry, the community and the co-op.
He said the continued increase in consumer demand had allowed Norco to continue to build on its product range and availability of high-quality dairy products.
"We continue to encourage Australians to seek Norco products in the knowledge that these products support our Norco farmers and the sustainability of the dairy industry."
