Australian Dairy Processors Urge Government Action as Industry Faces Financial Strain

The Australian Dairy Products Federation (ADPF) has expressed concern over the increasing number of dairy processors facing closure or administration, with Beston being the 13th in the past two years. ADPF chief executive Janine Waller highlighted the pressures that are weighing on the sector, including retail price constraints, high overhead costs, regulatory burdens, and rising competition from imports.

“The difficulties facing Beston are emblematic of the broader challenges in the domestic dairy sector,” said Waller. “Retail price pressures, slow growth, and skyrocketing input costs are testing even the most resilient processing businesses.”

The ADPF is now urging the Australian government to engage with the dairy industry and implement the recommendations from the recent Inquiry into Food Security. Waller emphasized the need for a "specific road map" to stabilize and rejuvenate the sector, which is essential to avoid further closures.

Federal Agriculture Minister Julie Collins expressed her commitment to working with the industry. “Our government is listening to farmers and stakeholders to ensure we continue delivering for Australia’s agriculture sector,” Collins said.

South Australian Dairyfarmers Association president Robert Brokenshire, who has been in talks with 30 farmers affected by the Beston closure, echoed the call for federal intervention. He pointed to energy costs and the dumping of dairy produce from New Zealand and the U.S. as major issues undermining profitability across the supply chain.

As Australia’s dairy industry continues to face significant hurdles, the call for government action is growing, with hopes for a collaborative approach to ensure the sector’s sustainability and long-term viability.