Australian dairy farmers will benefit from the launch today of the Australian Milk Price Initiative (AMPI), the first Australian hedging market for milk.
Minister for Agriculture and Northern Australia David Littleproud said the market will allow dairy farmers to be more active managers of their milk supply by being able to sell their milk on the open market.
"The market, run on the Mercari platform, gives Aussie dairy farmers more choice of who to sell their milk to, provides greater price transparency for the dairy industry, and means dairy farmers can lock in long term pricing for their milk," Minister Littleproud said.
"This new trading platform will allow our dairy farmers to leverage their competitive advantage and will drive investment and growth in the industry.
"I congratulate Australian Dairy Farmers and the Australian Milk Price Initiative on Australia's first milk spot market. This innovative approach is helping farmers build better businesses.
"At the 2019 election, the Morrison-Joyce Government committed $560,000 to design new milk pricing and marketing concepts for the dairy sector. We're supporting our dairy farmers by ensuring a fair go for dairy businesses while creating a stronger business environment with better regulation, healthier market competition, and fair supply chains."
"Today we see the successful result of the government's seed funding."
The President of Australian Dairy Farmers, Rick Gladigau said AMPI will improve risk management across the supply chain with back-to-back pricing from customer to processor to farmer, providing the ability to lock in margins across the chain.
"Through consultation with industry bodies and the dairy community, and with a grant from the Federal Government, the new trading platform will allow Australian dairy farmers to leverage their competitive advantage," Rick Gladigau said.
"Ongoing investment and innovation are key to the future of the dairy industry. With an open market where farmers can choose who they sell their milk to, at what cost, and on what terms the future is looking brighter."
Fast Facts:
- At the 2019 election, the Morrison-Joyce Government committed $560,000 in seed funding for new milk pricing and marketing concepts for the dairy sector.
- The Australian Milk Price Initiative Bulk Milk Market is Australia's first spot market for milk.
- Forward hedging milk markets already operate in New Zealand, the US and Europe.
- Dairy generated $4.7 billion in farmgate value in the 2020/21 financial year.
