A new pricing tool for dairy farmers was launched at the United Dairyfarmers of Victoria annual conference on Friday.
The online tool aims to bring much-needed transparency to the Australian milk market.
The free calculator provides farmers with a transparent and credible source of farmgate milk prices and payment information.
It has been developed by independent milk services company Milk2Market.
"We've combined industry experience, published price announcements and publicly available data to produce the best milk pricing tool available," general manager, commercial development, Richard Lange said.
Farmers can compare payment structures and pricing based on their individual farm system.
"Members across the supply chain as well as government and regulators have been calling for greater price transparency in the dairy industry," Mr Lange said.
"Our goal is to make buying and selling milk better for everyone," he said.
"This easy-to-use online tool is free and gives farmers a customised gross annual income estimate based on an assessment of processor prices in their region."
The Milk Price Calculator is a pre-cursor to the launch of Milk2Market's Milk Exchange later this year.
The Milk Exchange will enable registered users to buy and sell milk directly via an online platform.
"We expect the calculator tool will help buyers and sellers gain a better picture of the market ahead of trading on the new milk exchange," Mr Lange said.
The Milk Price Calculator compares milk payments of major selected companies in Victoria and NSW.
Milk2Market aims to extend the service to all states (South Australia, Queensland, Western Australia and Tasmania).
For more information and to access the Calculator visit https://milk2market.com.au/milkcalculator/.