The current drought is showing the detrimental impact that the $1/litre milk and the discounting of dairy products has had on the profitability of dairy farmers across NSW.
Retailers’ behavior to discount dairy products had deteriorated farmers’ economic resilience and the prolonged drought is highlighting the reduced profits of farmers.
Preparing for drought requires that during good years farmers from across all commodities have extra cash that they reinvest back into their farm to prepare for the lean times.
For dairy farmers the continued discounting has meant there is no spare cash.
NSW Farmers’ Association is calling for fairer prices for all dairy products, especially $1/litre milk, to ensure that dairy farmers are able to risk proof their business and remain viable and resilient in both the good and bad years.
We want the value of the products on supermarket shelves to properly represent the quality and effort put into producing these products.
It really hurts to see milk on the supermarket shelf for $1 or cheese for less than $10 per kilogram, when you know the effort that has gone into producing a quality Australian product.
Dairy farmers and dairy products can no longer be taken for granted and remain at this unsustainable price.
There are two relationships that farmers need improved to get fair prices, that with the processor and also the retailer.
The retailers are at the top of the chain and we need urgent action to address this situation.
Farmers need to ensure a fair return for our products so dairy we can operate efficiently in the good years and be more resilient in the bad years.
Without a consistent change to the value of dairy products by the retailers, it will only become harder for dairy farmers to remain business resilient and continue to produce high quality products.
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