Uncertainty within the Australian dairy industry has slowly but surely spread north and Queensland dairy farmers now face the significant challenges of their southern cousins.
Demand from consumers has been high and with Queensland solely a fresh milk state selling only into the domestic market it would make sense to assume Queensland dairy farmers were enjoying some stability.
However, Queensland Dairyfarmers’ Organisation (QDO) president Brian Tessmann said since 2011, more than 170 dairy farmers had left the Queensland industry despite a fresh milk shortage.
“This equates to a loss of 170 million litres of milk production per year and $550 million in milk production investment and more than 580 on farm jobs,” Mr Tessmann said.
“Queensland will import 180 million litres this year from interstate to meet the needs of Queensland consumers. This should not be happening.”
Brendan Hayden, Pilton, bought his current dairy farm in 1993 and was one of seven dairy operations on his road. Today, just two dairy farms remain in the area.
Mr Hayden said he was unsurprised to see so many dairy farmers leave the industry considering the combined impact of industry deregulation in 2000 and ongoing price drops.
“I should get over it but I just can’t. On December 31, 1999, my milk price was at 58c/L and on January 1, 2000, when our milk quotas ceased, the price dropped to 21c/L and we were expected to survive,” Mr Hayden said.
“A lot of people classed those milk quotas as their superannuation and while we did receive a payment from the Federal Government it was nowhere near what it should have been and many people refused to play the game anymore.
“Then we had the impact of drought and unaffordable commodity prices and finally Coles came out with $1/L milk- the snowball effect was madness yet we question why there’s so few left?”
Mr Tessman said the looming federal election presented the perfect chance for government to uphold its commitment to the dairy industry.
“It’s clear that $1/L milk is unsustainable. The last time milk was priced at $1/L was in 1992 and since then Queensland farm gate prices have only gone up 20 per cent,” he said.
“QDO do not support a standard regulated price for milk but rather see the issue of low farm gate milk prices stemming from the market manipulation from the major retailers with their unsustainably low $1/L milk price.
“A continuation of the unfair and anti-competitive activities by the major supermarkets without some form of government intervention will result in the end of the Queensland dairy industry.”
Mr Hayden is a fourth generation dairy farmer and his daughter, currently working in the New Zealand dairy industry, has high hopes of returning to take on the family business in the future.
Mr Hayden said despite financial pressure he managed to build a new, fully computerised dairy in order to increase efficiencies.
“We want to be able to update and incorporate new technology. It’s the way of the future and it would mean greater productivity for us, bigger profit margins and some certainty for the next generation but we just can’t afford it,” he said.
“Our daughter is growing up in low prices so she remains positive- she eats, sleeps and breathes dairy cows- but the uncertainty is worse than anything.
“We’ve been warned to expect a possible drop of 2c/L on the back of the crisis down south, but that’s unofficial.”
Mr Hayden said his current cost of production was between 52 and 54c/L and his average price for the year would fall at about 58c/L.
“That’s what we’re up against, there’s no profit margin. At the moment we must thank the consumer for what they’ve done in the last month but I would urge them to please realise this is an ongoing problem,” he said.
“We need the consumer to go away from $1/L milk and buy a branded product permanently.
“I don’t ask to be the richest man in Australia, we just ask to be rewarded for our efforts like everyone else.”
