Milk prices are continuing to head in the wrong direction with one leading milk processor announcing it will pay farmers less for milk than it did in 2016.
Parmalat announced a two cent reduction on last year’s price, with farmers now told to expect an average price of 44.1 cents per litre in 2017.
NSW Farmers’ Dairy Committee Chair, Erika Chesworth said continuing price reductions are affecting the day to day running of farms and impact on farmer confidence.
“This is a NSW domestic milk issue where this lack of transparency needs explaining. When cuts are made to the farmgate price received by farmers, there is no justification, and we don’t know where that saving is going. There is certainly no price change on the supermarket shelves.”
“Recently there has been a spike in the number of hardworking farmers exiting the industry due to unsustainable prices often below the cost of production, which leads to a lack of confidence in the future of NSW dairy farming.” Ms Chesworth said.
The NSW Farmers Dairy Committee is contributing to the recently commenced ACCC inquiry into the dairy industry and hopes that this will answer the questions and concerns around milk price and alleged anti-competitive behaviour in the industry.
“Farmers need greater transparency about milk pricing decisions, and the Dairy Committee will be looking to increase its direct engagement with processors,” Ms Chesworth concluded.