Retailers must end the discounting of dairy products if they are serious about supporting dairy farmers.
The announcement last week from Coles and Woolworths about implementing a 10 cent levy on top of their dollar-a-litre milk, designed to go back to help farmers during the drought, is an insult to dairy farmers.
The ‘milk levy’ is not a long term solution to the dairy crisis and Coles and Woolworths need to pay farmers what they deserve.
Farmers are completely disillusioned by these announcements and morale has plummeted, with many considering how they can continue.
Farmers need to be able to receive fair prices in both good and bad years to ensure they have good business resilience and that we have a sustainable dairy industry. Continued discounting of dairy products has deteriorated farmers’ economic resilience and the drought is highlighting the reduced profits of farmers.
The big supermarkets have not shown leadership and have used dairy as a marketing ploy.
Farmers know the proposed drought relief range will divert sales away from branded products and are very concerned about diminishing the value of the dairy supply chain.
Farmers don’t want drought relief; they need fair prices for their products.
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We are calling for an end to discounting of all dairy products to ensure dairy farmers are able to risk-proof their business and to ensure a sustainable industry. The drought has highlighted the impact continued and severe discounting of dairy products has had on a farmers’ ability to maintain their businesses and be able to be risk resilient. We demand supermarkets come on board and put in place real change for all dairy to rectify the damage caused by last week’s announcements and before the supply of fresh dairy is further eroded.
- NSW Farmers dairy committee
