THE much-touted revaluing of fresh, Australian-grown foods in the wake of virus panic buying has made the scene ripe for advancing the concept of a retail levy on fresh milk.
So say a number of industry and business leaders, producers and agrifood marketing consultants.
The argument for a partial re-regulation of the dairy industry has found strong support in recent times as the plight of milk producers dealing with drought, bushfires, high fodder prices, skyrocketing energy bills and rock bottom farmgate prices has become more evident to consumers.
The effectiveness of the drought levy of 10 cents a litre in supporting dairy farmers, and the subsequent acceptance by consumers of the end to $1 a litre milk, has further boosted the case.
Now, the COVID-19 shortages is spelling out which foods Australians consider essential and marketing experts say consumer sentiment around the value of Australian-produced meat, dairy and fruit and vegetables has never been stronger.
Producer advocacy group Dairy Connect says a levy of some form needs to be at the forefront of consideration by government and dairy industry players given the strong support of supermarket customers for the continuation of a vibrant Australian dairy industry.
NSW farmer and Dairy Connect president Graham Forbes said overseas dairy imports must not be allowed to replace natural dairy produce and nutritious fresh milk.
A leaked proposal to the Federal Government from prominent Victorian businessman John Dahlsen urging 40c/l to be added to the price of milk in supermarkets has further stoked the levy fire.
Mr Dahlsen operates JC Dahlsen Group's hardware stores and is a former Woolworths and ANZ board member.
The proposal, sent to Agriculture Minister David Littleproud, is believed to push for an independent entity to collect the extra revenue and pay it back to farmers.
Dairy Connect has called for Mr Littleproud to convene a roundtable to reach consensus on a sustainable retail price for fresh milk, including the appropriate level of a dairy levy.
The Minister says a voluntary levy is the best option to support dairy farmers as it allows the market to respond, with consumers making purchasing decisions that benefit farmers.
Dairy Connect chief executive officer Shaughn Morgan said producers were not wedded to the 40c figure but it was now clear that via the drought levy on homebrand milk that the concept could be easily and effectively implemented.
Coupled with consumer and societal sentiment to support a fragile local industry, it was time to make serious moves on the levy now, not in 12 months time, he said.
Peak national lobby group Australian Dairy Farmers says if the farm exits are to be stopped, retailers need to increase the price of their store brand retail fresh milk to $1.50 a litre with the increase going back to farmers via their processors.
Because dairy farmers are price takers, having retailers sell discount fresh milk at the extremely low price of $1 a litre for almost a decade has had a severe impact, according to ADF.
In it's submission earlier this year to the Saving Australian Dairy Bill 2019, ADF said there was an opportunity for the Food and Grocery Code to set the outer boundaries on retailer conduct during the price rise process.
It was essentially a matter of fair dealing, ADF argued.
"A divestiture regime amendment to the Food and Grocery Code can resolve this situation," the submission said.
Essentially, the ADF said the wording needed to abolish fixed pricing of dairy products, replacing it with prices determined according to demand and supply fluctuations and establish a universally agreed percentage pass through margin for farmers to remain viable and sustainable.
The government should further enshrine the consumer watchdog's dairy specialist role as a position of oversight and advocate on the dairy farmers behalf, it said.