State’s dairy industry getting squeezed

 
Most dairy farmers in NSW will fare better than their interstate competitors with opening milk prices posted on Thursday to meet a mandatory ACCC deadline.
 
Processors Norco and Saputo set slightly higher prices for the most part in NSW, according to NSW Farmers, but the disappointing prices interstate would be unlikely to stem the continued loss of farmers from the industry.
 
It comes on the back of a report from Dairy Australia that found more than 80 per cent of dairy farmers in NSW were impacted by floods last year – more than half of which were severely impacted – and that climate and labour were the biggest concerns going forward. 
 
NSW Farmers Dairy Committee Vice Chair Malcolm Holm said the it had been a tough year for the state and the increases were a good start, but he warned broader drop in prices from processors coinciding with high input costs and competition for land were making it harder for farmers to stay in the industry, ultimately impacting on future milk production.
 
“We’ve seen the milk pool shrink and prices drop, and there’s a real concern that we could see a future with much less locally-produced dairy products,” Mr Holm said.
 
“The weather and access to workers is part of this, but there needs to be a concerted effort from everyone in the supply chain to ensure dairying can be a profitable business into the future.
 
“We’re seeing increased imported dairy products such as butter and cheese on the supermarket shelves, meaning Aussie families are missing out on great local products.”
 
For NSW producers, dairy giant Saputo opened with slightly higher prices than last season at $11.35/kgMS, while Norco was up to about $12.22/kgMS in the north. Lactalis was down to $10.70/kgMS in the south of the state, and $11.26 in the north – something Mr Holm said would need to rise in coming weeks.
 
“We’re really thankful for the support shown by Aussie families over the past few years after the destructive dollar-a-litre milk debacle,” Mr Holm said.
 
“What we need now are government policies and decisions that support – not hurt – dairy farmers, such as reversing the recent federal budget announcements of rises in heavy vehicle road charges and increased levies.
 
“Ultimately it’s Australian families who will pay the price of these decisions – either at the checkout or through a lack of choice in the future.”