<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Dairy co-operative Norco has announced it will raise its farmgate milk price by five cents per litre in response to </span><a href="http://www.9news.com.au/war" rel="" target="" title="war-related"><span>war-related</span></a><span> rises in </span><a href="http://www.9news.com.au/fuel" rel="" target="" title="fuel"><span>fuel</span></a><span>, fertiliser and freight costs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Norco says the price rise from next month will add about 30 cents per week to the </span><a href="http://www.9news.com.au/groceries" rel="" target="" title="average family grocery shop"><span>average family grocery shop</span></a><span> and is crucial to offset sharp increases in costs for their </span><a href="http://www.9news.com.au/farming" rel="" target="" title="farmers"><span>farmers</span></a><span> across northern </span><a href="http://www.9news.com.au/new-south-wales" rel="" target="" title=" New South Wales"><span>New South Wales</span></a><span> and south-east </span><a href="http://www.9news.com.au/queensland" rel="" target="" title="Queensland"><span>Queensland</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The farmgate milk price, which is the amount dairy producers pay farmers for milk, would lift to 97 cents per litre on average.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>BUDGET:</span></strong><span> </span><a href="https://www.9news.com.au/national/federal-politics-instant-tax-deduction-to-be-enshrined-in-law-jim-chalmers/dba7a95c-069c-43bd-92c7-8be822bb4475" rel="" target="" title="Millions of Australians offered $1000 instant tax deduction under proposed law"><strong><span>Millions of Australians offered $1000 instant tax deduction under proposed law</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Norco full cream milk currently retails at supermarkets for between $2.20 to $2.90 per litre.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"These cost increases are unprecedented," Norco Chief Executive Michael Hampson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Our farmers are paying double for diesel, triple for fertiliser and 40 per cent more for freight.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/milk-prices-cost-of-living-fuel-crisis-norco-announces-increase-in-farmgate-milk-price/4b690388-980b-4b20-af68-04b607d5b46d" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"These pressures are simply unsustainable without meaningful support across the supply chain - and this price increase is a small but important step in helping to offset those pressures."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hampson said the rise was not about increasing profits for farmers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Right now, farmers critically need these increases to remain viable and protect their livelihoods – that's the sheer reality of the situation," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This is not about increasing margins - it's about ensuring the sustainability of our farmers and the future of the Australian dairy industry."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The price rise comes as the wider dairy sector asks Coles and Woolworths to raise the price of their generic own-brand milk to help farmers cover costs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>eastAUSmilk president Tim Bale told nine.com.au earlier this month </span><a href="https://www.9news.com.au/national/price-of-milk-producers-and-farmers-ask-supermarkets-to-raise-prices-as-fuel-crisis-hits-industry/b9ce36de-5549-4eab-b643-10a6d0ae7afa" rel="" target="" title="the cost of urea"><span>the cost of urea</span></a><span>, a common nitrogen fertiliser, had more than doubled.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Farmers will cut back production or exit the industry over the coming months if something isn't done immediately," Bale said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hampson said further price rises may be necessary as cost pressures continue to build.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Winter planting of feed crops is exposed to the same global pressures and any shortage could lead to increased prices for dairy farmers toward the end of the year, he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>