Price hit puts a halt to future investment

“It’s not a cheap industry to get into,” he said.

“And as good as the lifestyle is, the returns are too hard.

“We want to encourage people to invest in farming, but we’re never going to encourage the next generation to get in.”

Mr Gladigau, a board member for the SA Dairyfarmers Association and SA director for Dairyfarmers Milk Cooperative, said the original price by Murray Goulbourn of $5.60 for milk solids was the bottom line for most producers.

“To get below $5.60 for this coming year is a knife in the back for the industry,” he said.

He said MG often acted as a price indicator for other processors.

“I will expect a bit of a reflection in opening prices,” he said.

He said this latest hit was on top of two years of bad seasons, high input costs and declining prices.

“I am completely opposed to having step down price – in what other industry can they do that,” he said.

“It’s a bit like the car industry saying it’s struggling and everyone who bought a Holden or a Ford owes them more money.”

Mr Gladigau said it was especially disappointing coming from farmer co-operative groups that were supposed to look out for the farmer benefits.

Mr Gladigau said he considered the situation for the industry as worse than three years ago at the time of the March4Milk.

“The price went up and people forgot how tough it is,” he said.

“The industry needs to sit down and work out a model for how we go forward.”