Australia's shrinking dairy industry continues to wither as milk is trucked across the country
Dairy lovers looking to buy local should check the label next time they take the cap off a bottle of milk.
The exodus from the industry has resulted in dairy processors trucking fresh drinking milk thousands of kilometres across the country to meet increased demand.
"It is very sad when people that love dairy farming have to cease because of the business circumstance," said dairy farmer and president of advocacy group eastAUSmilk Matthew Trace.
"Even though they love it, and people still want the product."
Mr Trace says demand is not the issue, but supply is a problem in Queensland.
"We're basically at a 50 per cent deficit, so about half of what's consumed," Mr Trace said.
"There is a lot of milk not far over the border in New South Wales, but there's also a significant amount coming all the way up from Victoria."
Changing industry
Since 1980, Dairy Australia estimates the number of dairy farms declined from 21,989 to 4,163, but the average herd size grew from 93 to 305 cows.
The trend is towards fewer farms, larger herds, and increased production.
Supplementary feeding and improved breeding have more than doubled the average dairy cow's milk supply from 2,900 litres in 1980/'81 to 6,164 litres in 2022/'23.
Victoria leads Australia's milk production with 2,774 registered dairy farms, compared to 466 in New South Wales, 351 in Tasmania, 278 in Queensland, 182 in South Australia, and 112 in Western Australia.
Since 2006/'07 Dairy Australia estimates the number of registered dairy farms dropped by 62.13 per cent in Queensland, 49.57 per cent in New South Wales, 49.55 per cent in Western Australia, 48.67 per cent in Victoria, and 26.11 per cent in Tasmania.
In the same period, Australia's milk production only reduced from 9,583 million litres to 8,129 million litres.
Johanna Marie and Jennifer Nichols, ABC News, 4 December 2023.
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Farmers raise competition concerns at industry roundtable
Farmer representatives from across Australia convened in Canberra yesterday for a roundtable hosted by the National Farmers’ Federation (NFF) with Assistant Minister for Competition Andrew Leigh.
The meeting came as the Federal Government continues its review of competition policy, and as supermarket pricing comes under increased scrutiny with a Senate inquiry set to commence in 2024.
NFF Chief Executive Tony Mahar said it was critical that the concerns of farmers were heard and acted on by the Albanese Government.
“Our members are increasingly frustrated by the imbalance in market power between small family farming businesses, and the large corporates that dominate Australia’s food supply chain,” Mr Mahar said.
“Yesterday’s roundtable was an opportunity for industry representatives to put their concerns directly to Government and hopefully get some momentum behind long overdue reform of Australia’s competition settings.
“What we heard is farmers are fed up with the lack of transparency, and worried about the continued consolidation of our supply chains.
“We’re encouraged by the Government’s response to these issues so far, but we know reform is hard, so we need to make sure we’re seeing meaningful changes to give farmers a fair go.”
Issues and policy suggestions highlighted at yesterday’s Roundtable include:
The need for significant competition reform to ensure a sustainable and profitable food production sector in Australia.
Market price transparency
A lack of market price transparency is having a significant impact across all agricultural industries, but particularly in horticulture.
Recent findings by AUSVEG suggest 34% of farmers surveyed nationally were considering exiting the industry within 12 months.
Farmers need to understand how the price they are paid is determined.
Specific issues include: a lack of transparency over factors which determine price, lack of contracts, lack of enforceability and accountability to contractual obligations, unfair trading practices and deceptive conduct.
The group discussed the utility of mandatory price disclosures and price reporting platforms.
Greater resourcing for the ACCC to ensure it has the capacity and powers to effectively monitor and proactively investigate highly concentrated markets with the potential to harm consumers and businesses.
Greenwashing and prescriptive reporting is already apparent in domestic supply chains. Farmers and industries are being proactive in this space, but with little to no reward.
The onus on farmers to provide additional data is significant – for example farmers in horticulture (banana growers) already report spending an additional $6,000-$8,000 on compliance reporting and audit processes with no increase in prices to reflect the additional cost.
Consumers and farmers alike need evidence to support the integrity, legitimacy, quality of prescriptive requirements imposed in the name of sustainability. This helps to ensure transparency, understanding and ultimately truth in labelling for consumers.
Industry Codes of Conduct are valuable but need teeth.
The Food and Grocery Code must be made mandatory to ensure wholesalers and retailers are held accountable and treat farmers fairly.
Fear of commercial retribution continues to be a significant barrier to farmers seeking justice and calling out unfair trading practices.
Agency Agreements - the roundtable discussed the growing use of agency agreements as a legal form of retail price maintenance and called for this to be outlawed
National Farmers Federation, 7 December 2023
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Watchdog will ‘regret’ letting Coles buy milk processing plants, dairy industry representatives say
The ACCC approved the supermarket’s takeover of Saputo’s two dairy processing facilities after a ‘detailed review’ but farmers fear the move will reduce competition in the market.
Dairy industry representatives have said the Australian consumer watchdog will regret its decision to allow Coles to purchase two fresh milk processing facilities, making it the only supermarket in Australia to own and operate a milk processor.
The Australian Competition and Consumer Commission said it approved the takeover by Coles after months of “careful consideration” and “discussions” with farmers and industry bodies, and a “detailed review” of Saputo and Coles’ internal documents.
In April, Coles announced it had bought the Erskine Park factory in New South Wales and the Laverton plant in Victoria from dairy processor Saputo for $105m, subject to regulatory approval from the ACCC.
The president of advocacy body Australian Dairy Farmers (ADF), Rick Gladigau, said he opposed the decision.
“We hope that in 10 years’ time we are not saying ‘we told you so’, like we have said about the impact of $1 litre milk that Coles started in 2011,” Gladigau said.
“We cannot see how this deal will result in anything but increasing Coles’ already substantial market power, reducing market competition and market transparency, and increasing risk to farmers.
“[It] will be a key turning point that the industry and ACCC will look back upon and regret.”
Before the takeover, Coles already acquired about 80% of milk processed at the facilities, buying raw milk from producers and processing it at the plants under an agreement with Saputo.
Farmers raised concerns that the acquisition would result in Saputo leaving the NSW fresh milk market entirely, reducing competition of raw milk buyers.
But the ACCC deputy chair, Mick Keogh, said Saputo’s financial records suggest the company has the “commercial incentive” to continue operations in NSW, and therefore takeover is “unlikely” to significantly lessen competition in the market.
Aston Brown, The Guardian, 4 December 2023.
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Gina Rinehart’s Hancock Agriculture purchases Split Rock Dairy
Australia’s richest person, Gina Rinehart, has added another asset to her reshaped rural property portfolio, snapping up a 1980ha northern NSW dairy.
Hancock Agriculture has purchased the Split Rock Dairy, located north of Manila near Tamworth in northeast NSW, the company announced in a statement.
Details of the off-market sale remain confidential, but it is understood the Split Rock Dairy property will complement other backgrounding properties within the Hancock Agriculture portfolio.
Spilt Rock Dairy, to be named Buena Vista, was owned in an equity partnership which included three investors and Australian dairy industry champion Robert Cooper.
The original farm was owned by three brothers, before they and Mr Cooper started a new company 10 years ago.
Spilt Rock Dairy was expanded during their tenure from 1400ha to 3230ha, increasing cow numbers from 400 to 1200. The property includes irrigated and dryland cropping with 366ha under irrigation via 11 pivots.
“The purchase of this property is consistent with the Hancock Agriculture strategy of acquiring properties to support growth in our annual turn-off of 2GR branded Fullblood and Pure Bred Wagyu. We thank the vendor for facilitating the sales process and we wish them well,” Hancock Agriculture said in a statement.
Tallis Miles, The Weekly Times, 28 November 2023.
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Queensland's Radel dairy farming family to leave industry after 117 years
After 117 proud years of dairying, and four years bottling their milk under their own popular Central Queensland Dairy Fresh brand, the Radel family has made the hardest of decisions, to exit the shrinking industry.
"It is a very emotional thing, these cows are like family. The reality is you spend more time with these cows than you do with a lot of even your best friends," he said.
The independent Cooloola Milk processing plant had been bottling Robbie's milk at Dagun, near Gympie, but the factory's owner is planning to retire and has put it and the surrounding land up for sale.
Mr Radel's approaches to other dairy processors failed to secure a viable deal.
He was upset that despite the fact Lactalis (Parmalat) trucks drive right past his Coalstoun Lakes farm in the North Burnett, the French-owned company refused his offer to supply them with milk in a market where demand far outstrips supply.
They share a rocky past — Mr Radel has publicly blamed poor prices from Lactalis for the bank "forcing" them to sell their much larger Biggenden-based dairy.
"I spoke with their [Lactalis] field officer who said, 'Oh yes, that sounds good, yes, the truck goes past, send me some of your test results from the quality of the milk and the volumes,'" Mr Radel said.
"And before I even had a chance to do all that I received a text message from her just saying I've spoken with management, and they're not prepared to take you on as a supplier.”
"They drive literally past my gate but would rather drive to Victoria and pick up milk to bring into the Queensland market than pick up someone who has got 117 years of supplying high-quality milk."
After declining to comment this morning, a Lactalis spokesperson provided a written response this afternoon.
"We were one of many dairy processors that the farmer approached, and we are deeply saddened to hear that the farmer is now closing their dairy farm," the statement read.
"At the time that the enquiry was made to Lactalis on 17 July 2023 we had sufficient milk to meet our requirements.
"Under the Dairy Code of Conduct we are obliged to publish our Milk Supply Agreements, by 2pm on 1 June and have the Milk Supply Agreements finalised with each of our farmers by the start of the new milk season commencing on 1 July."
Jennifer Nichols and Johanna Marie, ABC News, 23 November 2023.
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Lismore's Norco ice cream factory opens after $100 million rebuild from flood damage
Almost two years after it was gutted by a record-breaking flood, a farmer-owned ice cream factory in the northern New South Wales city of Lismore is back in full production.
The Norco factory remains on a flood-prone site on the bank of the Wilsons River, but this time the design is different.
Chief executive Michael Hampson said 130 people were now working in the factory, which is churning out more than 500,000 litres of ice cream a week for the national market.
"There's been a lot of people that have had the shoulder to the wheel, done the midnight hours over an extended period of time to get this factory operational," he said.
The rebuild has cost around $100 million, with the NSW and Commonwealth governments providing financial sweeteners totalling $46 million.
The factory redesign includes an electronic engine room perched high above record flood levels, and a submarine-style room where ice cream vats holding millions of litres of product are stored.
Federal Agriculture Minister Murray Watt said the rebuild was an opportunity to build back better.
"We know Lismore is a flood-prone town," he said.
"It's so important for this town's morale, the region's morale, to have these visible signs of progress and there is nothing more visible than the Norco ice cream factory.
"We have to take the opportunity to build back better and increase the resilience of this factory."
Farmers welcome new-look factory
Dairy farmer and Norco director Paul Weir suffered $3.5 million in financial losses from the February 2022 flood, including 110 cows and calves which were washed away in flood waters.
The 51-year-old from Tuncester said it was a huge relief to see the factory reopen in Lismore.
"From a farmer co-operative point of view, there's no way that we would have had the money to rebuild," Mr Weir said.
"Our whole farmer base had just been smashed with the floods and extended wet weather.
"There was a lot of worried nights, will it or won't it go ahead?
"Until they [the government] finally came out and said they agreed to fund it, then the pressure went off everyone's shoulders."
Bronwyn Herbert, ABC Rural, 24 November 2023.
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EPA ensures farmers meet effluent management responsibility
A dairy cow will dump up to 15 per cent of its daily manure output on the concrete yard of a dairy farm. It is then washed into effluent ponds. Managing this issue is important.
Biosolids - appropriately treated environmental sludge - and liquid effluent are potential resources that can be beneficially utilised in agriculture, helping to reduce emissions and fertiliser costs on farm.
According to Dairy Australia, 10-15pc of manure created by each cow on a daily basis is washed from dairy sheds into holding ponds, so reusing effluent can be a beneficial tool on farms.
Dispersing treated effluent across paddocks in instantly-usable liquid form or as a biosolid incorporated into the ground to act as a slow-release fertiliser helps save cuts costs of bought-in fertiliser.
The organic matter of effluent provides soil-conditioning properties and improves soil moisture and nutrient-holding capacity.
With a high nitrogen level, effluent provides productivity gains from pasture responses, which can result in increased production.
Using effluent as valuable source of nutrients
Hans van Wees, a sharefarmer at Tinamba in central Gippsland, Vic, utilises a purpose-redesigned 10-megalitre dam and irrigation system to manage effluent and utilise it for pasture growth.
Washdown water and effluent flow into a large solids trap at the side of the dairy. The trapped solids, when dry, are spread over nearby paddocks. The liquids are pumped into a dam, which is located about 300 metres from the dairy.
A stationary pump mixes the dam water to prevent slurrying.
When Mr van Wees wants to apply the effluent water to the paddocks, he opens a release valve into an irrigation channel connected to the dam.
The effluent water is then pumped into one or two other channels and diluted with irrigation water - at a rate of one part effluent to two parts irrigation water.
Mr van Wees can irrigate 120 hectares directly from this dam or shift the effluent to another dam further down the property and irrigate other paddocks from there.
The capacity of the effluent dam means there is no runoff or flow over into paddocks and consequently no effluent running off the farm in wet weather.
The backup dam further down the property provides double insurance.
Mr van Wees said the system returned fertiliser savings of 100kg/ha of single superphosphate over 120ha.
Jeanette Severs, Queensland Country Life, 22 November 2023.
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Australian Dairy Farmers in chaos: Eight Victorian councillors ousted
The Australia Dairy Farmers peak lobby group is in chaos, after eight of its Victorian councillors were ousted in the lead-up to its annual general meeting today.
ADF has been forced to postpone the election of a new national president until Friday, but it’s unlikely the eight Victorian councillors will be replaced in time.
United Dairyfarmers of Victoria president Bernie Free, who was only confirmed in the role on Monday, led the push to oust eight of his own state’s ADF councillors, notifying them via email on Wednesday that their positions had been “revoked”.
“Most of them had a conflict of interest, so we decided, with advice from the VFF president (Emma Germano), that we remove them all,” Mr Free said.
He said that “conflict was in being Dairy Farmers Victoria members”, plus “most of them had already served their two year terms”.
But former UDV president Mark Billing, who spearheaded the formation of DFV as a new state lobby group, said he and the other councillors were still “UDV members and are all ADF business members”.
“(Fellow ADF councillor) Bruce Knowles and I went through an election to represent the south west (on ADF national council),” Mr Billing said. “We were all democratically appointed, but summarily dismissed.”
As for their terms being up, Mr Billing said that was not the case for two of the ousted councillors and that ultimately UDV had the discretion to vary terms.
Mr Billing said Victorian dairy farmer representation on ADF was already under scrutiny, given the Victorian Farmers Federation had not paid any subscriptions to the peak dairy lobby for more than 12 months.
The loss of eight Victorian ADF councillors leaves the ADF council with just seven from other dairying states.
Peter Hunt, The Weekly Times, 23 November 2023.
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Dairy Australia’s year in review highlights power, labour costs
Dairy farmers are battling costly expenses across the nation, but some states have been more profitable than others.
Victorian dairy profit margins have doubled in the wake of the 2016 clawback — but the cost of running a farm is galloping as well.
New figures from Dairy Australia covering the post-2016 era reveal a revival in fortunes for the beleaguered sector, with surpluses in most states hovering close to $4.00 per kg milk solids.
Victorian and South Australian farmers were the biggest winners last financial year, with an average surplus figure of $3.94 per kg milk solids.
NSW stood at $3.84, Queensland at $3.75 and WA at the back of the pack with a $3.49 per kg milk solids average in the 2022-23 season.
Victorian and SA farmers enjoyed the biggest surplus jumps between the 2016-17 and 2022-23 financial years; in the wake of clawback, they were barely making $1.50 per kg milk solids in profit.
Dairy Australia industry analyst Isobel Dando said record-high farmgate prices played their part in the pricing purple patch for the sector.
But a combination of surging power prices, labour costs and other input expenses eroded the gains somewhat.
“Farmgate prices were at record highs last season. What our figures have shown is that expenses were also very high last financial year,” Ms Dando said.
Released recently, the Australian Dairy Industry in Focus report goes someway to explaining why farmers continued to leave the sector despite strong prices, with a correlation between shrinking margins in 2019-20 and an exodus of primary producers.
“Everyone’s power bill is going up, many businesses have the issues with labour costs,” Mr Free said.
“Rates are an area where farmers in particular are also feeling pressure, along with those other price rises.
“The UDV wants the state government to do more to reduce the rates burden, it’s not the fault of councils alone.”
“Power bill prices aren’t going to go down anytime soon,” he said. “Running a dairy takes a lot of power, it’s not like a household, so that needs to be acknowledged.”
The annual review confirmed Australia’s milk pool fell to a 30-year low last financial year, clocking in at 8.129 billion litres.
Alex Sinnott, The Weekly Times, 23 November 2023.
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Australian dairy imports up 30 per cent in 2022-23
The Australian dairy industry has slipped from fourth to fifth place on the list of world dairy exporters.
Australia ranks behind New Zealand, the European Union, the United States and, for the first time this year, the United Kingdom.
Australian dairy exports were worth $3.7 billion in 2022-23, down from $3.8 billion the previous year, the Australian Dairy Industry In Focus 2023 report released on November 15 has revealed.
But Australia remained a significant exporter of dairy products, despite accounting for about 1 per cent of the world's estimated milk production, Dairy Australia industry analyst Isabel Dando said.
Australia's share of world exports fell from 4.8pc in 2021-22 to 4.7pc in 2022-23, while the UK's share grew from 4.5pc in 2021-22 to 5.3pc in 2022-23.
Australia now exports 30pc of the milk it produced, down from about 50pc two decades ago,
"The share of milk exported has contracted over time due to population growth and an overall decline in milk production," Ms Dando said.
The report also revealed that Australia's milk production and number of dairy farms continued to fall.
Carlene Dowie, Queensland Country Life, 15 November 2023.
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Dairy Australia: Australian dairy farmers returns $6.1 billion in 2022-23
Dairy farmgate returns hit $6.1 billion last year, after a 24 per cent jump, but higher costs are putting pressure on profits.
New data released by Dairy Australia today confirms the national farmgate figure edged close to $6.1 billion in 2022-23, a 24 per cent jump from $4.9 billion in the 2021-22 financial year.
The Australian Dairy Industry in Focus report calculated the average farmgate price at $9.80 per kilogram of milk solids, with a shortage of supply forcing processors to nail down supply.
Dairy Australia industry analyst Isabel Dando said the $6.1 billion farmgate value meant the dairy sector was the third largest rural industry nationally.
She said the vast majority of farmers reported that they made an operating profit, with profitability at an all-time high in some regions.
“We saw historically high farmgate prices over the 2022-23 season, driven by competition for milk supply among processors,” Ms Dando said.
“However, depending on the region, many farmers faced challenging seasonal conditions with floods in parts of NSW, Queensland and Victoria.”
The annual review confirmed Australia’s milk pool fell to a 30-year low last financial year, clocking in at 8.129 billion litres.
The last time the national pool was around that figure was back in the 1994-95 season, when it tallied at 8.2 billion litres.
“Roughly 20 years ago, the milk destined for export was about 50 per cent of all milk produced in Australia,” Ms Dando said. “Today, that export figure is about 30 per cent of all milk produced in 2022-23. That’s been a long-term shift.”
Alex Sinnott, The Weekly Times, 15 November 2023.
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Fight over cow burps looms as farmers face forced emissions cuts
A fight over plans to cut farming’s greenhouse footprint from methane-burping livestock looms for the Albanese government, with Agriculture Minister Murray Watt declaring the sector must reduce its emissions as the National Farmers Federation campaigns against the government’s renewable plans.
Watt declared the industry cannot rely only on carbon offsets and must change practices as he launched consultation on Tuesday on the government’s agriculture and land plan, which will guide cuts to emissions from agriculture in line with the national target to hit net zero by 2050.
The government is also committed to the global pledge to cut methane by 30 per cent from 2020 by 2030.
New Zealand has imposed a tax on farm methane emissions that kicks in from 2025, but in news that will be welcomed by Australian farmers, Watt has already ruled this out.
Watt said the reforms “will be done without a methane tax or ag sector emissions target” but government would work industry to develop a plan.
The agriculture minister linked increasing droughts and extreme weather events to a 23 per cent decline in average profitability, with climate change costing farmers about $30,000 on their bottom lines every year.
Farmers also need to boost their green credentials to maintain critical export market access, which is the destination for about 70 per cent of Australian agriculture produce, Watt said.
“Pretty much all of our international trading markets, as well as domestic consumers, expect to see higher and higher sustainability records when it comes to agricultural production.”
Mike Foley, The Sydney Morning Herald, 8 November 2023.
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Saputo seeks buyer for King Island Dairy
Saputo is seeking a buyer for its King Island Dairy operations, revealing it is seeking to offload its interests on the Bass Strait isle.
Management announced a “strategic review of its King Island Dairy facility in Tasmania” this morning as well as confirming an additional $27 million towards improvement projects across its sites in Victoria and Tasmania.
The review will consider a range of commercial alternatives, including a potential sale to a third party, with its 63 staff informed of the financial deliberations.
Saputo chief operating officer Leanne Cutts said the processor hoped to find a buyer for King Island Dairy soon.
“In making these investments and strategic decisions, we remain focused on maximising our return for every litre of milk,” she said.
“(This will) further enhance SDA’s position as a high-quality, low-cost processor in Australia.”
Saputo is also in the process of selling its Laverton and Erskine Park processing sites, subject to regulatory approval.
“As King Island Dairy’s historic roots are deeply embedded in the region, we hope to find a buyer for the facility to ensure the continued success of its renowned specialty cheese products,” Ms Cutts said.
“We recognise the potential impact any decision may have on the King Island community, especially our employees and dairy farmers, and we are committed to thoughtfully considering all possible scenarios before any decisions are made.”
Alex Sinnott, The Weekly Times, 8 November 2023.
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Dairy strike: Fonterra offers pay deal to United Workers Union
Dairy farmers are breathing a sigh of relief after the United Workers Union struck a deal with Fonterra.
Union leaders have declared a statewide dairy factory strike over, with a number of in-principle deals from processors on the table.
The United Workers Union hailed the deals with Fonterra, Peters and Saputo as a “cost-of-living pay increase,” with Lactalis also in the final stages of inking a tentative deal.
More than 1400 workers at 13 factory sites went on strike for 48 hours last week, the largest industrial action in the dairy sector since 1985.
Alex Sinnott, The Weekly Times, 27 October 2023.
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Queensland farmers hit by fire can get emergency help for fodder and fencing
Primary producers affected by recent fires are being encouraged to complete a survey detailing their losses and look at other assistance programs for help.
"We're trying to get a measure of what's been the impact on their fodder resource - that is how much feed have they lost - and fencing," she said.
AgForce contacted all its members this week stating the survey would help determine where support - urgent and long term - is required and where assistance is needed to support primary producers during this emergency and into the recovery.
To get help completing the survey, producers can contact the Department of Agriculture and Fisheries (DAF) on 13 25 23.
An Individual Disaster Stricken Property (IDSP) declaration provides eligible primary producers with access to freight assistance up to $5000 to move emergency fodder for livestock to their home property; building, fencing materials, machinery and equipment; and animals purchased for restocking as a result of the disaster.
Queensland Country Life, 1 November 2023.
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For further advice on bushfire preparation and safety, click here.
If you need any assistance with bushfire preparation or recovery please reach out to Lynelle on 07 3236 2955 or ea@eastausmilk.org.au
NFF conference: Agriculture Minister Murray Watt hits back at farmers’ campaign
Newly elected NFF president David Jochinke said farming was in “the fight of our lives” as he launched the ‘Keep Farmers Farming’ campaign on Thursday, during his at times fiery inaugural speech.
“Our farmers are under siege. NFF’s public campaign … is an embarrassment for Minister Watt and the Albanese Labor Government. Every single Australian is feeling the impact of the pain and hurt being put onto farmers, because the end result of Labor’s bad policies are families being forced to pay more for food at the checkout.”
When he spoke at the NFF national conference on Thursday, Mr Watt said he was “surprised” the peak farm lobby group had launched the campaign.
“I think all of you know that my door is always open to listen, collaborate and for a little fella I think that I’ve got broad shoulders,” he said.
“So I was surprised to read … that the NFF is launching a campaign against the government arguing that, and I quote, ‘food and fibre production is not a central priority for the current Federal government’, that Labor is pursuing ‘a niche ideological agenda’ and that ‘Labor is wilfully ignorant of the plight of farmers’.
Mr Watt said he believed adding nearly $3 billion in new spending towards agricultural initiatives since Labor took office last May “felt like a central priority”, despite a “tight fiscal environment”.
“But I guess that’s just politics … and just like you have good and bad seasons, relationships between governments and political lobby groups will have their ups and downs,” he said.
Jason Gregory and Natalie Kotsios, The Weekly Times, 26 October 2023.
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Bega bosses told farmers need good incentives to grow milk pool
Dairy processors have been told to stop moaning about Australia's high farmgate milk prices and shrinking production volumes and focus on ensuring farmers continue receiving the financial incentives they deserve to stay farming.
"The big costs involved in running a dairy farm are no different to running a dairy company - we need a fair return to stay in business," a frustrated farmer shareholder told Bega Group's annual general meeting this week.
While congratulating the national dairy and grocery business for rushing to adjust prices to as much as $9.55 a kilogram (milk solids) in the past two years as processors scrambled to secure enough volume, he was fearful recent price peaks may be short-lived.
Too often dairy farmers were simply paid "what's left" after shareholders and processing costs took their cut, he said.
Yet, even dividends to Bega's farmer suppliers, who represent a big portion of its shareholder base, "didn't cut the mustard".
He foresaw more farmers quitting dairying if processors were not more proactive and offered next generation producers a future with income and investment security.
Andrew Marshall, Queensland Country Life, 26 October 2023.
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Milk tanker strike ends, but Saputo, Fonterra, Peters, Lactalis factory workers still out
Saputo’s Gippsland milk tanker drivers have returned to work, ending their 48-hour strike that began Tuesday at 3am.
Dairy Farmers Victoria president Mark Billing said some farmers had been forced to dump milk, but much of the impact had been offset by drivers and middle management from Western Victoria heading to Gippsland to help out.
Transport Workers Union state secretary Mike McNess said the strike action ceased at 3am today, with drivers due to meet Saputo representatives for discussion tomorrow morning.
Mr McNess has previously stated the dispute was over reasonable hours of work and job security, given Saputo’s recent plant closures and announcements of further plant axings.
Meanwhile 1400 United Workers Union dairy factory workers continue to strike at Saputo, Lactalis, Fonterra and Peters plants, which may soon be unable to store more milk, raising the prospect of processors having to dump on site.
The union is calling for a 15 per cent pay rise over three years, with specific demands of Saputo to confirm the future of its operations in Australia.
Alex Sinnott and Peter Hunt, The Weekly Times, 19 October 2023.
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Flood-ravaged dairy cooperative Norco delivers $9.1m profit while paying farmers record milk price
Despite a catastrophic flood forcing it to shut its ice cream factory in early 2022, Norco has delivered a $9.1 million profit for 2022-23 — up $0.2 million.
It has done so while paying its farmers a record milk price for the dairy cooperative of 87.08 cents per litre, with the increase costing an additional $30 million.
"Our farmers needed that price increase, they deserve that price increase and it was great that being the cooperative in the region, we were able to drive that for our members and for other dairy farmers in the region also," chief executive Michael Hampson said.
Mr Hampson acknowledged the past two years had been difficult and significant changes had been made to the business as a result.
Kim Honan, ABC Rural, 19 October 2023.
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White Gold
Hundreds of dairy farms once covered the rolling green hills of the Atherton Tableland in Far North Queensland. Today, only a fraction remain, and often local supermarkets run out of milk. However, high milk prices and the return of the local factory to Australian ownership are seeing a rebirth of the industry.
The link to watch this video can be found here.
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