THE Queensland Dairyfarmers’ Organisation (QDO) will reveal at an industry breakfast this morning (Wednesday) that the two and a half years cheap jerseys of the supermarket milk price war has cost the industry dearly.
The impacts of the milk price war have hit processor profits, forced down milk prices to farmers to where most are making losses and has seen more than 80 dairy farming families exit the industry, at a time when the State is short of milk to meet the needs of Queensland consumers.
The loss of these dairy farmers equates to a loss of some $40 million of investment in fresh milk production a loss of over $240 million in investment in fresh milk production, and at least 240 jobs at a farm level, as well as more staff losing their jobs along the value chain.
QDO president Brian Tessmann said the situation was a crisis point for the industry and action was needed from supermarkets, processors and government to bring about stability and the restore sustainability for the industry.
The annual dairy industry Situation and Outlook breakfast is being held in Brisbane, revealing the latest trends in the Queensland milk industry from the last 12 months. It is a joint initiative of QDO, Subtropical Dairy, and Dairy Australia.
Mr Tessmann said it had been a tough year http://www.cheapjerseys11.com/ for the industry, with the huge challenges of low milk prices and market pressure, combined with ex Cylone Oswald flooding which hit farmers who were still recovering from recent natural disasters.
“The cost of cheap, supermarket brand $1/litre milk is continuing to take a huge toll on the Queensland industry. We are losing farmers and capacity and clearly the trend is that consumers will be impacted as well in the longer term,” Mr Tessmann said.
“There have already been concerns raised last week about the major supermarkets using their power with fuel discounting in a way that will eventually harm the market and consumers. This is the same case with milk. Queensland is short of milk to supply its own needs across the year and the long term prospects for Queensland being able to supply its own milk are under threat, as clearly indicated in the release of this report.”
The report outlines the clear and ongoing market malfunction and failure that is impacting dairy farmers, as a direct result of the supermarket price war.
Mr Tessmann said the industry was calling on federal politicians ahead of the forthcoming election to make their positions clear and spell out their support for the industry and dairy farming families.
“Do they support the Queensland dairy industry and dairy farmers?,” he said.
Mr Tessmann said industry was continuing to lobby for an ombudsman with real power and a mandatory code of conduct and changes to the current Competition and Consumer Act to address the situation.