WA Dairy Farmers Express Frustration at Stagnant Milk Prices

In Western Australia, dairy farmers are voicing their concerns over stagnant farmgate milk prices, which have remained unchanged for several years despite rising production costs. The recent announcement of a mere 2-cent-per-litre increase by processor Bega has not been well received, with many farmers stating that it's far from sufficient to address their financial struggles.

Brunswick dairy farmer Michael Partridge commented, "Prices haven't moved for three and a half years; last year was a really hard year for farmers in Western Australia." This sentiment echoes the findings of Dairy Australia's Dairy Farm Performance Program, which showed that 50% of dairy farmers made a loss last year.

The WAFarmers Dairy Council is lobbying for a 5-cent increase to support farmer profitability, highlighting that the average farmgate price in WA ranges between 60-70 cents per litre. Ian Noakes, president of the council, emphasized the disparity between business costs and milk pricing, stating, "Anybody in business would know how much costs have increased in business in the past years."

Furthermore, the limited market for WA dairy farmers, who mainly sell to local processors, exacerbates the issue. The influence of major supermarkets offering low-priced home brand milk is seen as a contributing factor to the pricing stalemate. Noakes urged for changes, accusing supermarkets of undermining the local dairy industry.

Coles, the only processor to respond to inquiries, defended their pricing strategy, citing their direct sourcing model as a way to provide guaranteed farm gate prices to dairy farmers. However, the response has not alleviated the growing frustration among the farming community.