Price war undermines farmers

WHILE dairy farmers across Queensland continue to work on fixing the damage from last year's natural disasters, the impacts of a man-made disaster in the form of the supermarket retail milk price war are continuing to undermine the viability of Queensland farmers.

This was the key message presented at the annual Northern Dairy Industry Situation and Outlook business forum, where industry experts highlighted the results of an Australia-wide survey.

Speakers revealed that while milk production in Queensland was slowly recovering - farm gate prices in Queensland had not, with many farmers suffering a cut in farm gate prices this year and the result has been confidence was at a low ebb.

The results of surveys of farmers across Queensland showed that farm confidence had taken a major hit due to the impacts of the milk war, which had placed extreme pressure on the rest of the value chain, leading to cuts in farm gate prices.

It is expected these cuts will result in many Queensland farmers making a loss this year.

Since the supermarket price war started, Queensland has lost more than 40 dairy farmers, despite the northern industry having several positives in its favour, including a growing local market, driven by population growth.

Gympie Times


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