Norco has increased its farmgate milk price by 2c to 77c/l for the six months to 30 June, lifting the average milk price just over 70c across the full year.

Norco CEO Michael Hampson said improved trading conditions and support from customers caused the board to approve a price hike. Hampson said the higher milk price would help suppliers regain some of the losses incurred in the past two years of drought. With the lift in payout, Norco will pay $2m to more than 300 of its suppliers.