Fresh dairy change on World Milk Day


NSW Farmers is welcoming a fresh start for our dairy farmers this World Milk Day.
 
For the first time, farmers have today been able to view and compare farmgate milk prices offered by processors, while major retailer Woolworths has extended its drought levy and announced a new grants program for dairy farmers.
 
NSW Farmers Dairy Committee  Chair Colin Thompson says processors and retailers play a critical role in supporting a sustainable and profitable dairy industry.
 
“Processors have been given an opportunity to demonstrate their support for dairy farmers by complying with the new code of conduct.”
 
“Dairy farmers today should have been able to view the different pricing options. Today is important, but the remainder of the season will be critical in gauging whether the code creates a fairer operating environment for farmers.”
 
“It is disappointing to see that some of the supply contracts are lengthy and complicated, especially given Australian Dairy Farmers developed a code-compliant standard form supply contract that is only twelve pages long.”
 
Mr Thompson has also welcomed an announcement by Woolworths today that a 10 cent drought levy will remain in place on dairy products until June 2021.
 
“The drought levy has been in place since 2018 on two and three litre milk bottles, and it is expected to generate $80 million for dairy farmers by mid next year.”
 
“The levy has been a welcome addition, however it must transition into a price rise on dairy products to create long-term change for farmers.”
 
“The dairy industry faces chronic competition failures, and higher retail pricing would help overcome this.”
 
“It is well known that $1.50 a litre milk pricing would put farmers on a more sustainable footing. This pricing is in line with 2011 market conditions, before the damaging $1 a litre milk trend set in.”
 
“It is also pleasing to see that Woolworths has committed $5 million to fund infrastructure and technology grants for dairy farmers. Hopefully this can help aid recovery coming out of a challenging period.”

Date: Monday, 1 June 2020
Media Contact:  Michael Burt  | 0428 228 988 | burtm@nswfarmers.org.au