Farm

You would not have to be a dairy farmer to know that over the past 18 months the prices dairy farmers have been receiving for their milk are very close – if not below – cost of production. There have been many farms (and farmers) under financial administration or very tight Bank control. Many farm supply agencies have been carrying large debts for long periods of time. Even though it was well publicized that Australia was (and still is) receiving unprecedented demand for dairy products from China, Milk Processors could/would not pay farmers any more. So we hear the excuses the AUD is too high etc, etc. And yet the Chinese clearly wanted more Australian dairy products and China is the most lucrative milk product retail market in the World. So the high AUD excuse does not apply. Enormous demand and farmers being paid little more than cost of production with some actually going into liquidation. I am confused!

And now we see large Milk Processors:

1. 1. Mooted to be partnering the Chinese in a major dairy farm acquisition and expansion in Tasmania
2. 2. Spending $120 ml building milk processing plants
3. 3. Offering over $500 ml to purchase a rival factory

So this is all to get more throughput – yet they could not pay the farmers and extra 5 cents a litre 12 months ago when many were in – and have not survived – dire financial straits.

Maybe Australian farmers should take a lesson from their European counterparts in showing their dissatisfaction with prices they are being paid.