UDV Milk Price Structures


As an ongoing issue for the industry, UDV has led the industry discussion on what is a complex issue that is not generally understood well by farmers. Since UDV started the debate, a number of milk processors have conducted, or are conducting, milk price structure reviews.

In more recent times the commentary from farmers and consultants is more informed, and it has become clear that the current systems are not transparent, unfair, and detrimental to the Australian dairy industry. As a result, potential solutions to the problem are now being offered.

UDV has recently compiled a set of material forming the basis for a much simplified milk pricing structure including a think tank of industry consultants identifying the points of complexity in the system, and the "Manika" report outlining key components of a simplified system.

These are things that all farmers can mention to their factory field staff, consultants, or neighbours to help build awareness and support for positive change.

•A Simplified Milk Pricing Formula
•A Realistic Spring Differential
•Independent Months with no linkage
•More Modest Productivity Bonuses
•Reporting of the Median Price instead of the Average Weighted Price
•Reporting of a Price Range by processors 

For more information see the presentation and our handy summary below:

Milk Payment Reports

The components of a simplifies milk payment structure that UDV is calling for are based on consultation with multiple industry stakeholders and consultants. This consultation was undertaken by John Mulvany and presented in two main reports.
These can be read below:

 
Variation of Milk price

As part of this work UDV has also commissioned reports comparing variation of milk prices offered to a set of model farms by key processors in the three Victorian regions.
These can be read below:

2017 - 2018

Northern Victoria
(Adobe PDF File)
SW Vic & Gippsland
(Adobe PDF File)

2016 - 2017

Western Vic Price Variation
(Adobe PDF File)
Gippsland Price Variation
(Adobe PDF File)
Northern Vic Price Variation
(Adobe PDF File)