Bega Cheese will send 7c of its increased customer surcharge to farmers to help cover soaring costs in its new temporary Bega Group Support Payment.

The company imposed an 8c surcharge in response to significant cost pressures on fuel, plastic resin, packaging and other components last week. After considering whether to pay some of the surcharge forward to its suppliers, it announced Friday that it would lift the surcharge to 15c and send 7c to suppliers. The support payment totals 5c/l or 67c/kgMS, with payments commencing 1 May.

Processor Norco confirmed a temporary price increase of 5c/l from 1 May following board discussions. The temporary price increase lifts Norco’s average annual farmgate milk price to 97c/l, sending an extra $1m to farmers each month.

Last week, retailer Coles announced a temporary special payment of 5c/l, equivalent to 66c/kgMS beginning 1 May and to be reviewed monthly. Coles is also distributing $1m to direct-sourcing farmers, allocated based on milk solids supplied between 1 July 2025 and 31 March 2026.