Lion Milk Procurement

Lion strives to pay market competitive prices across our major procurement regions, with price and contract terms tailored to suit regional conditions.

We do not believe in retrospective price cuts and, in the trade-exposed and more volatile southern region (Victoria, Tasmania and South Australia), since 2013 we have offered our dairy farmers a broad range of fixed and variable pricing options for contracts of varying lengths (one, three or five years).

A minimum guaranteed pricing commitment is a feature of our pricing model in all regions. We also pay incentives to reward farmers for premium quality. In the Southern states, we have also consistently paid a premium base price to encourage investment in year-round production.

Retrospective pricing

Lion is opposed to retrospective changes in milk price including price cuts, as they undermine trust, drive volatility and damage farmers’ ability to plan for and invest in their businesses. That is why, unlike some processors, Lion did not impose retrospective cuts in response to the 2016 market conditions and does not support them as a matter of principle.