Dairy farmers facing crisis

Vanguard March 2013 p. 6
Duncan B.

Australia’s dairy farmers are facing a crisis. Hit by falling prices for their products and rising costs, many are leaving the industry.

Fifty-five out of Queensland’s 540 dairy farmers have left the industry in the last two years. The Queensland Dairy Organisation president blames this on the discounting of house-brand milk by the supermarkets, in particular the giants Coles and Woolworths.

Queensland and New South Wales dairy farmers are the hardest hit by the cheap milk war. These states have limited export product processing plants and most of the infrastructure is geared towards supplying milk to the domestic market.

Feed costs have risen by 15% while electricity costs have gone up by 50% in the first quarter of the financial year. Costs of fuel and other farm inputs have also risen. Dairy farmers are struggling to pay their bills on time. Dairy farmer leaders claim that dairy farmer income could be down by as much as $260,000 this season.

Farmer Power

On a more positive note, Victorian dairy farmers have formed a new organisation called Farmer Power. This group has held well-attended public meetings at various locations in dairy farming areas in Victoria. They staged a creative protest by parking tractors on the front lawn of a Coles supermarket in Warrnambool in January.

Farmer Power is attracting some high profile support. Bob Katter addressed a Farmer Power rally in Warrnambool in January. Barnaby Joyce and Dick Smith addressed a Farmer Power meeting at Tongala on February 13, which attracted over 500 people. Farmer Power has put forward a list of demands which Vanguard readers can find at www.farmerpower.com.au .