SA dairyfarmers are “spent” and have called for measures to protect their businesses and livelihoods, following the drastic drop in farmgate milk prices by Murray Goulburn, Fonterra and Lions Drink and Dairy.
Hindmarsh Tiers dairyfarmer Mandy Pacitti said farmers were “gobsmacked” and “totally numb” after the MG announcement.
She fears the industry she has worked in, and loved, for 30 years won't survive.
“We’re all under pressure because we’re all tied into the market price and with the announcement that’s been made, we are all going to take cuts because MG is the price setter here in Australia,” Mrs Pacitti said.
“We’ve all done so many years of hard slog with seasons and really crap milk prices, we’re already digging out of holes and to have to turn around and take another loss – we can’t do that. We’re all spent, there’s no reserves.
“I’ve got two boys that want to be there but they’re working 160-180 hours a fortnight for nothing. You can’t keep doing that.”
Mrs Pacitti and Holstein dairy cow Winter were in attendance at a Nick Xenophon press conference, where the Independent SA senator called for immediate action on the dairy crisis.
“The dairy industry is in crisis. This requires emergency measures and is why we’re calling for a number of urgent measures,” he said.
Mr Xenophon called for an emergency milk levy and an inquiry to establish a sustainable long-term path for the sector.
“These dairyfarmers shouldn’t be working like medieval serfs, where they work week-to-week and a number of them are now facing financial ruin and their farms being foreclosed,” he said.
Mr Xenophon also called for changes to competition laws to ensure dairyfarmers are treated fairly in the supply chain, and said the state should use “foreign aid to buy milk powder to give those countries in our region in need”.
“It would have a double benefit – one for our dairyfarmers and also to those developing countries in the region that desperately need the protein that milk powder will deliver,” he said.
Family First MP Rob Brokenshire, who has been dairyfarming for 30 years, said it was the biggest debacle he had witnessed during his time in the industry.
Mr Brokenshire said dairyfarmers were under unprecedented pressure and needed assistance from supermarkets, responsible management from processors and level-headed cooperation from politicians and government.
“It’s an opportunity for the supermarkets to realise dollar-a-litre milk – less than the price of water – is wrong and they can correct that wrong now,” he said.
“To ask the Federal Government and the opposition to consider a 10 cent a litre levy is not an outrageous idea if it helps stabilise the domestic dairy industry and is much less than the 50c/L levy Vic is calling for.”
Mr Brokenshire said there was already a precedent for a levy, with the Howard government implementing an 11c/L levy during the deregulation of the dairy industry.
“I believe consumers would support a 10 cent levy if it was for a set period of no more than 2-3 years in order to save an industry in crisis,” he said.
“If we don’t do everything we can at present to support the industry, then we may be facing a milk shortage in this country in future years.”
Mr Brokenshire said the behaviour of major processors Murray Goulburn and Fonterra, combined with international circumstances the industry was facing, had put many dairy farmers in a financially vulnerable position.
“We can’t afford to see more dairies close in this state or more family livelihoods sacrificed,” he said.
Mr Brokenshire also made a passionate plea to consumers to buy local products to help dairyfarmers survive the crisis.
“I appeal from my family’s heart and from all dairyfarmers families heart to buy as much dairy product as you can,” he said.
“Please buy SA and Australian dairy product and you’ll help us get over this and in return we will grow a dairy industry to create jobs for you.”
