The decision by Coles and Aldi to add 10 cents a litre to their private label milk must spell the end of irrational pricing of fresh milk that had taken so much value from the dairy industry.
The NSW Farmers Dairy Committee and all dairy farmers have been fighting for this result since $1 litre milk was introduced in 2011. In recent years, consumers have also played a role changing the mindset of the three major supermarkets.
It is time to restore pride and resilience in our industry. NSW dairy farmers have not received a fair price for many years, with market conditions and industry structures working against us. Milk production has plummeted 11 per cent over the last year. The industry needs immediate change as the status quo is simply not sustainable.
Dairy farmers are certainly not the only ones suffering in this intense drought. The difference for our industry is the drought has further exposed how market failings and unsustainable farm gate milk prices have drained the resilience of dairy farmers to survive increasing climate variability.
The dairy industry has rightly featured strongly in state election commitments, with both the Coalition and Labor announcing the appointment of an industry advocate to address the fresh milk crisis. The commitments are slightly different, but the major parties have recognised that decisive action is needed to save the dairy industry.
There has also been recognition at a federal level. Labor announced a proposal to set a minimum farm gate milk price and the federal government has committed support for a mandatory code for the dairy industry.
These commitments must translate into tangible actions post the elections. We will continue to fight to get the changes required for dairy farmers to get a fair price for their milk. These wins are just the first steps and we know that much more work is needed.
- Erika Chesworth, Chair NSW Farmers Dairy Committee
