Price rise small change for dairy farmers
A 2c a litre price rise - there's not even a coin in circulation for the increase. But that's the increase Tableland dairy farmers will get paid for their milk.
Dairy Farmers Milk Cooperative yesterday released the prices it will pay its producers, who are still reeling from the loss of an 11 million litre Woolworths contract in May.
Farmers will get an average of 47c a litre for tier-1 milk, up from an average of 45c a litre.
Tier-2 milk will vary during the year from 28c to 40c a litre.
Ravenshoe dairy farmer Lyn O'Connor said it was not a sustainable price.
The loss of the Woolworths contract and the recent slashing of allocations from 71 million litres to 55 million had raised hopes of a significant price rise.
"The base price of 47c per litre for tier-1 is comparative with what other processors are offering this year," she said.
"While it it explainable and understandable it is simply not enough."
Millaa Millaa farmer Dan Portegys said the price would hurt farmers but the real impact would come via National Foods' decision to cut allocations and the loss of the Woolworths contract.
The 20 per cent cut in allocations could cost some farmers up to $200,000 a year.
"It costs about 37c to produce a litre of milk," he said.
"And while the tier-1 price is fine it’s going to be difficult to manage tier-2 prices, which is below the cost of production, but the real problem is the reduction of milk allocations."
Mr Portegys said in recent months the Far Northern community had rallied behind farmers and half of the lost Woolworths contract had already been recouped by a surge in support for Dairy Farmers milk.
Ms O'Connor called for Far Northerners to continue their support for the region's farmers, but said the Federal Government and the Australian Competition and Consumer Commission had to addresses supermarket power.
"The future of the Far North Queensland industry is in tier-1 milk and that means Dairy Farmers branded milks," she said.
"This pricing announcement and what we know of the new payment system individually links each farmers income to milk sales in the region south to Rockhampton, west to Mt Isa and all points north."
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It's not enough: Ravenshoe dairy farmers Lyn and Des O'Connor say the price rise is "understandable" but it is not enough for the struggling Tableland industry. Picture: MARC McCORMACK
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