FARMERS across the Eastern states have been despairing in recent weeks about the price of milk dropping.
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This in turn has caused a lot of anger and confusion amongst dairy farmers in NSW, Victoria, South Australia, Queensland and Tasmania.
The downturn first started when milk production companies Murray Goulburn and Fonterra slashed the price of milk solids from $5.60 per kg to between $4.75 and $5/kg because of a global slump.
One such farmer however, remains positive despite the recent milk price drops.
Milton dairy farmer Robert Miller told the Milton Ulladulla Times that after a contract with Parmalat and Pauls secured in January this year, it meant that milk prices in Milton will remain consistent until January 2017.
However Mr Miller said that when Coles started charging only $1 for milk as far back as 2011, it ruined the industry.
“They were told years ago that the price was unsustainable and it has taken five years to manifest but it is starting to only hit now,” he said.
“There may be a price drop for us next year if the Victorian milk prices are considered market price.”
Mr Miller was also concerned about the lack of interest from politicians about the dairy crisis in the lead up to the Federal election.
“Politicians haven’t gone near the dairy industry,” he said.
Consumers in supermarkets all across Southern NSW and the South Coast have helped the situation by boycotting the cheaper milk sold by supermarkets in favour of branded, slightly more expensive milk.
“Look for branded milk such as Pauls, Pura, Dairy Farmers or A2 on the supermarket shelves,” Mr Miller said.
NSW Farmers Dairy Committee chair Rob McIntosh has cautiously welcomed the move by Coles supermarkets to create an independent fund to support Murray Goulburn dairy suppliers.
With the rural debate held in Goulburn last week, NSW Farmers Dairy Committee Chair Rob McIntosh is urging consumers to ‘point the finger’ at Coles on their milk prices.
“Today’s announcement by the government of a significant support package is welcome, but this is a band-aid solution to a much more serious wound,” Mr McIntosh said.
“It’s time we started talking about the elephant in the room here - one dollar a litre milk is simply unsustainable.
We’ve had enormous anecdotal support from the public over the past few weeks as consumers have become aware exactly what $1 litre milk means to our dairy farmers.
“Consumers are voting with their wallet and buying more proprietary brands; sending a message to our major supermarkets that Australians value the sustainability of our farmers and they are willing to pay a few cents more for milk to ensure family farms continue to be viable.
“Woolworths is on the record stating that dollar a litre milk prices have never been considered sustainable for industry - we all know they were forced to cut prices in the ongoing supermarket war. Coles started this problem, and the onus is on them to fix it.
“While all Australians appreciate paying a dollar a litre for their milk; many are happy to pay a small fraction more to ensure our family dairy farms stay viable.”