The farmgate price of raw milk in Fiji will be determined independently by the Fijian Competition and Consumer Commission (FCCC), a move aimed at ensuring transparency and fair returns for dairy farmers amid growing calls for higher milk prices.
The announcement comes as dairy farmers have urged authorities to raise the farmgate price of raw milk to between FJ$1.50 and FJ$1.80 per litre, citing rising production costs and the need for improved profitability in the country’s dairy sector.
Fiji Cooperative Dairy Company Limited (FCDCL) Chief Executive Officer Vimal Chand said the farmgate milk price was recently revised upward by 5 per cent, effective July 1, 2026. The increase raised the price paid to farmers from FJ$1.06 per litre to FJ$1.12 per litre.
“We are negotiating and talking with Fiji Dairy Limited (FDL) to explore the possibility of a further price increase,” Chand said. “However, we want the FCCC to independently determine the price to ensure transparency and fairness for all stakeholders.”
The involvement of the FCCC is expected to provide an objective pricing mechanism that balances the interests of dairy farmers, processors and consumers while strengthening confidence in the sector’s milk pricing framework.
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In addition to discussions on milk prices, Chand welcomed the Fiji government’s allocation of FJ$4 million in the national budget for dairy sector development. The funding is intended to improve productivity and support dairy farmers through several targeted initiatives.
The budget allocation will support:
- Calf rearing programmes.
- Milk topper price support initiatives.
- Milk transportation from farms to chilling centres.
- Pasture establishment and fodder development.
- Livestock feed and agricultural chemicals.
- Automated milk collection systems on dairy farms.
- Dairy advisory services.
- Veterinary and animal health services.
The investment forms part of Fiji’s broader efforts to strengthen domestic milk production and reduce dependence on imported dairy products.
Industry observers note that establishing an independent mechanism for determining farmgate milk prices could provide greater stability for dairy farmers while encouraging long-term investment in the sector. Combined with government support for infrastructure and farm productivity, the initiative is expected to contribute to the sustainable growth of Fiji’s dairy industry.
With negotiations on milk pricing continuing and substantial government funding now in place, Fiji’s dairy sector appears poised for significant development in the coming years, with farmer welfare and industry transparency emerging as key policy priorities.
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