Since the decision was made in 2011 to dramatically discount white milk in Australia, QDO and Australian Dairy Farmers have consistently condemned retailers’ actions that have negatively impacted farmers. By: Ross McInnes, QDO vice-president
The white milk processors of the dairy industry have been severely impacted by the introduction of discounted milk, but many continue to supply to supermarkets that stop their brands from reaching higher values. The pressure from the retail sector on processors to tender ‘competitive’ prices is clear when factoring the power retailers have over processors in controlling the distribution of processors’ full range of products.
Within our region Norco has held their price, Lion has reduced their price and Parmalat is seeking a reduction through arbitration. Twelve months ago, Murray Goulburn reduced their NSW farm gate price by nearly five cents per litre and their implosion allowed other processors to reduce their milk cost as well. Processors have now used the NSW situation to justify a degradation of the Queensland price.
Processors deserve more from retailers, but farmers also deserve more. Cost increases affect us all, except the major supermarkets it would seem.
Source: Queensland Country Life