Australian Dairy Farmers Face Deepening Crisis Despite Rising Retail Prices
Source: The DairyNews
In Australia, the price of milk and dairy products has surged, with a two-liter carton of milk now priced at $3.10 and a 500-gram packet of grated cheese costing $7. Despite these increases, Australian dairy farmers are facing significant reductions in their earnings, with pay cuts ranging from 10-16%.
This financial strain is critically affecting the livelihoods of many young farming families across the nation. Jason Smith, a dairy farmer from Irrewillipe, expressed his struggles with the financial pressures after his milk company drastically cut the prices they pay him, leading to an anticipated loss of $217,000 in revenue next year. This substantial decrease will impact his ability to maintain his workforce and farm operations, forcing him to cancel planned upgrades and potentially lay off employees.
The dairy sector's challenges are echoed by Dairy Farmers Victoria leader Mark Billing, who anticipates continued declines in milk production due to the reduced prices paid to producers. This trend has been exacerbated by a shift among consumers towards cheaper imported dairy products, with imports from New Zealand alone increasing by 36% in the 2022-2023 period.
Craig Emmett, another farmer based in Stanhope, Victoria, highlighted the generational resilience of his farm but acknowledged the necessity of stringent cost control to remain financially viable. The dairy industry has been under severe stress since the early 2000s, with the number of dairy farmers in Australia more than halving from those operating at the start of the century.
A new mandatory code introduced after the 2016 milk price crisis, which saw dramatic and retrospective price cuts by major processors, has provided some stability by requiring these companies to publish their minimum milk prices by the start of June each year. Nonetheless, the future remains uncertain for many in the industry, with ongoing challenges in maintaining production levels and profitability.
Full article. Source
The dairy sector's challenges are echoed by Dairy Farmers Victoria leader Mark Billing, who anticipates continued declines in milk production due to the reduced prices paid to producers. This trend has been exacerbated by a shift among consumers towards cheaper imported dairy products, with imports from New Zealand alone increasing by 36% in the 2022-2023 period.
Craig Emmett, another farmer based in Stanhope, Victoria, highlighted the generational resilience of his farm but acknowledged the necessity of stringent cost control to remain financially viable. The dairy industry has been under severe stress since the early 2000s, with the number of dairy farmers in Australia more than halving from those operating at the start of the century.
A new mandatory code introduced after the 2016 milk price crisis, which saw dramatic and retrospective price cuts by major processors, has provided some stability by requiring these companies to publish their minimum milk prices by the start of June each year. Nonetheless, the future remains uncertain for many in the industry, with ongoing challenges in maintaining production levels and profitability.
Full article. Source
