QUEENSLAND milk producers have backed Federal Agricultural Minister David Littleproud call for Australian supermarkets to apply a retail levy on all dairy products for the foreseeable future.
In March last year, the price of discount milk in supermarkets was raised in response to the ongoing drought from $1/litre, and now sits around $1.20-$1.29/litre.
Mr Littleproud now wants the supermarkets to increase the per litre cost of milk to $1.50 and to pass that increase directly back to the farmers.
Mr Littleproud said the levy should be applied to all dairy products, all dairy brands and all pack sizes.
QDO president Brian Tessmann said the levy would provide stability during a very uncertain time.
"The coronavirus has caused havoc on both Australian and international dairy market," Mr Tessmann said.
"As the weeks under lockdown continue and the world's economies edge closer to recession, there are fears that prices paid to farmers could reduce by 20 per cent as a result.
"In addition the drought that has taunted our farmers since 2017 has not broken.
"The rain received in February was not enough to revoke any of Queensland and NSW's drought declarations.
"We still need intervention and we still need help."
Mr Tessmann said the federal government needed to work with retailers and dairy processors support the future of the dairy industry.
"One thing the corona pandemic has made abundantly clear is the importance of food security and biosecurity to our island nation," Mr Tessmann said.
"We are extremely lucky that we can more than comfortably survive on what we produce at the moment.
"However, without assistance from consumers, retailers and the government, our dairy industry still faces an uncertain future as more farmers exit due to lack of profitability.
"If Australian consumers want our dairy industry to have a future, they have to be prepared to be part of the solution.
"If the supermarkets are prepared to back this levy then it will go a long way to giving us a chance."
