The Queensland Dairyfarmers’ Organisation (QDO), alongside the entire dairy industry, was surprised and disappointed with Parmalat Australia’s unprecedented attack on Queensland’s dairy farmers by labelling the farm sector “unwilling to make itself competitive”.
Unfortunately, the cost of milk production rises the closer you are to the equator. The warmer climate, lower quality tropical pastures and fodder all contribute to an overall higher cost of milk production. In addition, processors in Queensland require year-round milk production to ensure shelves can be stocked 365 days per year.
The lower production costs in southern Australia stem from the cooler climate and the seasonal spring production system that relies on the availability of temperate pasture. Queensland farmers are currently involved in the same dairying improvement programs including those made with animal genetics.
Since 2011, times have been tough for processors and farmers alike. Both farmers and processors have shared in the pain caused by the introduction of $1 per litre milk. At that time Parmalat was forced to implement a 3 cents per litre drop on the price it paid its suppliers.
QDO is committed to seeing all milk sold in Australia sold for a sustainable price that equally benefits both farmers and processors and ensures a fair rate of return for the industry as a whole.
It is indeed strange that the Fair Milk Logo bill would evoke such concern from Parmalat. The logo would exist solely as a voluntary consumer information tool, not in any way resembling a compulsory ‘quasi regulatory’ system. The Fair Milk Logo simply empowers consumers to identify and hopefully support local fresh milk products or processors that pay a sustainable price to Queensland dairy farms.
QDO continues to work with Parmalat and all processors to improve the sustainability of Queensland milk production to ensure all sectors of the supply chain improve the viability and longevity of the state’s dairy industry. The Fair Milk Logo simply builds upon this this commitment and will in the long term deliver for consumers, retailers, processor and farmers.