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Would you pay more for milk to keep farmers in business?

Rural News

The dairy industry is rallying the major supermarkets to increase the price of their own branded milk.

New South Wales Farmers is calling for milk to be priced at $1.50 per litre, to ensure the sustainability of the sector.

The past 12 months has seen 51 dairy farmers leave the industry in the state.

Dairy Committee Chairman Colin Thompson told Macquarie’s Rural Reporter Eddie Summerfield, while prices rises this year have been welcomed, more is needed.

“The price didn’t change for 8 years, it was at a heavily discounted price, and then we’ve had things like floods, and unprecedented drought,” Mr Thompson said.

“This is putting incredible pressure on farmers to remain viable, and it’s why we’re seeing a mass exodus of farmers from the industry.”

In the past 12 months, 51 farmers have left the industry in New South Wales leading to a 7 percent drop in productivity.

Colin Thompson says consumers have benefited from discounted prices for too long.

“They’re probably going to pay a little more for their dairy products, they’ve been purchasing milk at prices that the industry cannot afford to give any longer.”

Coles, Woolworths, and Aldi were given the opportunity for interview.

Woolworths and Aldi provided written statements — Coles failed to respond to inquiries.



Listen to the full interview above where Colin and Eddie discuss why $1.50 is a fair price, the impact of cheap cheese, and changes in consumers attitudes.

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Rural News