Australian processor Norco has addressed the Senate enquiry into the supermarket discounting that is throwing shadows on the already floundering Australian dairy industry. Norco has voiced serious concern about the discounting moving down the supply chain estimating that at current prices supermarkets will push farmgate prices down to 31c/L – about 20c/L under production costs. They predict a shift to increased Victorian production due to cheaper land prices and more desirable climate.

On a side note, Norco has announced a plan to produce specialty A2 milk locally in southern Queensland and Northern NSW. Norco now has 600 A2 cows which have been mated with A2 bulls. Potentially a good move in an economy were ordinary milk is worth less and less.