Milk price ‘must rise’ to save State’s farmers
AUSTRALIA - WA’s milk shortage, which has led to it being trucked from the Eastern States, will worsen unless the State’s farmers are paid more, farm groups have warned.
2 March 2007
2 minute read
Last year, WA dairy producers ranked as the lowest paid in the country, averaging 29¢ a litre compared with a national average of 33¢.
The State’s annual milk production also fell below 380 million litres, the lowest in a decade.
This summer, major processor National Foods began trucking milk to Perth from South Australia to fill export contracts for UHT milk.
The company claims that the imports are a short-term measure driven by the drought but farmers say the shortfall is due to unsustainable prices and a lack of corporate investment in producers.
Brunswick dairy farmer Michael Partridge said it was disappointing to see milk imported when the farmers who stayed in the industry had worked hard to improve efficiencies.
Like many farmers, Mr Partridge has increased his herd since deregulation to offset tighter margins. He said the number of farmers in the State had reached a “critical mass” and any further falls would affect equipment suppliers, breeding technology and future investment.
“Farmers are efficient, able and willing to make this work, but processors and retailers need to be prepared to work with us,” he said.
South-West farm consultant Steve Hossen said an average price rise of at least 5¢ a litre was needed to prevent further falls in production.
“There is one way forward and that is for farmers to work together, either within the existing co-operative or in a collective bargaining environment,” Mr Hossen said. “It is completely in the farmers’ hands.”
WA Farmers Federation dairy section president Tony Pratico said dairy farmers had been granted an exemption by the ACCC to collectively bargain with processors but attempts in the past had failed.
Mr Pratico said the federation supported a collective approach, but he warned that WA’s milk shortage would worsen unless action was taken soon. Challenge Dairy cooperative chairman Larry Brennen said he was concerned about the milk shortage but hoped it would spark change in the industry.
Source: The West Australian
