A PROPOSED “milk levy” to provide assistance for dairy farmers reeling after recent price cuts has been welcomed with cautious optimism.
More than 600 people attended public meeting in the south-western Victorian town of Terang on Wednesday night, where dairy farmers and community leaders met to discuss ways the dairy industry can survive in the current environment.
Farmers across the state are dealing with reductions in the funds they receive from supplying milk to a number of major companies.
Murray-Goulburn announced last month it would cut the price it pays farmers for their milk from $5.60 per kilogram of milk solids to between $4.75 and $5 per kilogram.
Fellow dairy co-operative, Fonterra announced a similar price reduction last week, only offering to pay $5 per kilogram of milk solids, with the price backdated from July 1 last year.
One proposal outlined by event organiser and lobby group, Farmer Power president, Chris Gleeson, would involve a 50 cent per litre levy placed on all milk sold nationally, with the proceeds to provide assistance to dairy farmers.
“If the consumer is happy to pay for a milk levy to support dairy farmers, then let’s do it,” Murrabit dairy farmer, Andrew Leahy said.
Although welcoming the proposed levy, Cohuna dairy farmer and Murray-Goulburn supplier, Di Bowles said the idea should come from proven industry representatives.
“The implementation of a milk levy might be something good to do to support farmers, but I do not know how best to implement it,” she said.
United Dairyfarmers Victoria policy councillor and Cohuna dairy farmer, John Keely said there is more to the industry than supplying milk to consumers.
“There are so many questions and not enough answers with this proposal. How will the funds be distributed, and will they go to all suppliers or farmers in certain parts of the State,” he said.
Independent Senator, John Madigan – who attended the Terang forum – called for the Victorian Government to take immediate action to support farmers impacted by the price cuts.
“There is a tsunami going to hit this industry if people don’t wake the hell up to what is going on. If we don’t, our dairy industry will go down like Australia’s car industry, and the steel industry,” he said.
“Australians need to educate themselves on this issue. They need to be aware that $1 for a litre of milk in the big supermarkets is not a good thing for this country.”
