THE lack of upward movement in farmgate milk prices for southern Queensland and northern NSW dairies, despite an ever-increasing shortfall in production, has left frustrated producers pinning their hopes on foreign investment.
Most seem to have written off the possibility of government intervention to address what they say is a clear market failure in their region.
Instead, they are pushing industry bodies to develop links with overseas companies, hoping to both increase export market opportunities and facilitate the entry of more factories on home soil to ramp up competition for milk.
Dairy Connect's North Coast farmer representative Paul Weir said it seemed many farmer groups were walking away from the "$1-a-litre supermarket disgrace because they just can't get anywhere".
He said subtropical region milk producers were today receiving an average of five cents a litre less than they were eight years ago, even though production had halved in the region in that time.
"At a time when market fundamentals point to us growing, processors are trucking more and more milk up from the south," he said.
"That is market failure in a big way.
"From the farmer's point of view, the answer lies in making the supermarkets compete for our milk.
"We need to dry up what is on the domestic market. That is the only way under current laws that farmers will have any bargaining power."
Dairy Connect, which has just stepped up its farmer representation from two to three members in each of the four zones in NSW, says it is focused on that outcome.
China appears to be where the potential is - Dairy Australia says it is now largest dairy export market.
In the past eight years, exports increased by more than 300 per cent from 28,000 tonnes to 117,000t, with value-added and premium products such as cheese, UHT milk and powders making up the bulk of shipments.
The latest Dairy Australia milk production figures show year-to-date increases across every state, except Queensland which declined 6.4pc.
The NSW North Coast only increased 2.2pc, against figures like 11.2pc in inland and central NSW and 3.1pc in southern NSW.
Shan Goodwin
Journalist for The Land on the North Coast.
Journalist for The Land on the North Coast.
