State’s dairy industry getting squeezed

Most dairy farmers in NSW will fare better than their interstate competitors with opening milk prices posted on Thursday to meet a mandatory ACCC deadline.

Processors Norco and Saputo set slightly higher prices for the most part in NSW, according to NSW Farmers, but the disappointing prices interstate would be unlikely to stem the continued loss of farmers from the industry.

It comes on the back of a report from Dairy Australia that found more than 80 per cent of dairy farmers in NSW were impacted by foods last year – more than half of which were severely impacted – and that climate and labour were the biggest concerns going forward.

NSW Farmers Dairy Committee Vice Chair Malcolm Holm said the it had been a tough year for the state and the increases were a good start, but he warned broader drop in prices from processors coinciding with high input costs and competition for land were making it harder for farmers to stay in the industry, ultimately impacting on future milk production.

“We’ve seen the milk pool shrink and prices drop, and there’s a real concern that we could see a future with much less locally-produced dairy products,” Mr Holm said.