Dairy farmers are being urged to actively seek to benefit from the Canberra’ rescue package launched by Deputy Prime Minister, Barnaby Joyce.
Industry advocacy group Dairy Connect’s representatives met with the federal Agriculture Minister in Tamworth yesterday to discuss the crisis confronting Murray Goulburn and Fonterra liquid milk suppliers, and the flow-on impact on the wider industry.
A sustainable price for liquid milk was high on the agenda along with a discussion on pathways to sustainability for the industry.
Although in a caretaker pre-election role, Mr Joyce announced the government was supported by the Opposition to provide a $579 million package to help dairy farmers whose incomes had been retrospectively cut by dairy processors Murray Goulburn and Fonterra dropping their farmgate prices.
Key elements in the announcement included $555m in dairy recovery concessional loans.
“Where they need cash now, we urge dairy producers to take advantage of the concessional loan offering with interest rates kicking off at 2.71 per cent reducing to 2.66pc cent on August 1,” said Dairy Connect chief executive officer, Shaughn Morgan.
The government has also approved $2m to establish a commodity milk price index; fast tracking Farm Household Allowance applications and 18 additional Department of Human Services employees to handle the task; $900,000 for an additional nine rural financial counsellors in Victoria, Tasmania, South Australia and NSW, and the appointment of a Department of Human Services dairy industry liaison officer.
Other commitments include $20m to fast track the upgrade of Victoria’s Macalister Irrigation District and a $900,000 contribution to Dairy Australia’s ‘Tactics for Tight Times’ program.
Mr Morgan, believed the support package was far-reaching and well thought out.
“People should drill down into the details of the package and engage with the relevant agencies to ensure they’re not missing out available assistance,” he said.
However, while federal government support was always most welcome, industry relationships needed to change and milk price protocols also required co-operative review and change.
“The Minister’s office can assist by positively encouraging producers, processors and retailers to work together to reform the policies and mindset that underpin $1 a litre drinking milk,” he said.
“We believe strongly that the minimum retail price for a litre of milk should be at least $1.25 a litre - a level at which a producer can just survive.
Dairy Connect’s farmer group chair, Graham Forbes from Gloucester, and producers Mark Fraser, Aberdeen; Rob Cooper, Manilla, and Peter Notman, Walcha were part of the delegation meeting Mr Joyce.
The organisation emphasised the need for the industry to work with governments “of any ilk” to develop a long-term plan to deliver sustainable milk prices and profitability back to producers Australia-wide.
It wants the federal government to sponsor an industry stakeholder forum to review current challenges and opportunities and to restructure the industry for income equity and long term sustainability.
“A key item on the agenda would be the future of $1/litre retail milk,” Mr Morgan said.
