LOWER milk supply is beginning to take its toll on dairy product availability on supermarket shelves in some states.South Australian supermarkets are reporting a shortage of Farmers Union two-litre iced coffee.
In Picton, southwest of Sydney, a retail outlet has reported a shortage of Big M and Dare flavoured milk products due to a shortage of milk.
Farmers Union, Big M and Dare are all brands owned by Lion Dairy & Drinks.
A company spokeswoman said there had been supply issues with some dairy products in South Australia due to a shortfall in milk but it was now overcoming the problem.
“Extreme weather conditions — including drought, together with significant cost increases across water, feed and energy — have contributed to the challenges facing dairy production in Australia which has resulted in lower milk supply and increased milk price,” the spokeswoman said.
“At this time, we are also experiencing an increase in demand for our dairy products and we were unable to source the additional milk to fulfil this volume.
“Unfortunately, as a result, we have had some intermittent supply shortfalls on some products.”
The spokeswoman said Lion Dairy & Drinks was working to source additional milk and continuing to mitigate against further shortages.
Dairy Australia figures show milk supply across Australia up to February was 7.8 per cent lower than at the same time last year.
Rabobank said last week conditions were deteriorating each month and the bank was expecting full-year milk production to be 8 per cent lower than last season.
Farmer Power chief executive Garry Kerr said the dairy industry was “haemorrhaging”, with farmers leaving the industry because they cannot make ends meet.
“Our food security is at risk,” Mr Kerr said.
“Farmers have got to get paid more for their milk.