Farmers keep eye on Woolworths milk deal

A collective bargaining group of 54 farmers in that area is set to undertake a trial with Woolworths and if approved by the Australian Competition and Consumer Commission, seven or eight farms will provide milk direct for a Farmers Own brand, cutting out the processors.

Con Watts, who runs Briar Bank at Pyree, said it would be interesting to see how the trial played out.

“At this stage all I’ve heard has been on ABC Radio and they will be providing around five million litres from a small number of farms in that area.”

He said times were tough for the once lucrative dairy industry.

“They need to make our industry more viable if they want young guys to come through,” he said.

“The average age of dairy farmers in Australia is between 50 and 60. There are no younger guys getting into the industry as it costs too much and they aren’t getting much in the way of returns.

“Milk prices have to go up to justify getting into the industry.

“The industry is in such a mess, who knows what will happen?

“This trial could be a good thing or it could be a bad thing, only time will tell.

“There won’t be too many [farmers] sitting back watching if they don’t do something, many won’t be able to afford to stay in the industry.

“There would be no companies that would invest for the returns dairy farmers are receiving.”

Mr Watts said reduced milk prices along with the rising costs had increased pressures on farmers trying to make a living off the land.

“We are now looking at planting new season grasses, the cost of fertiliser has gone up as has power bills – mine have gone up by more than $1000 a quarter,” he said.

“Everything is hitting us at once.

“And it doesn’t just affect us; it also affects the people we employ as well.

“A lot of contracts are up for renewal at the end of the financial year and it will be interesting to see what they come out with.

“There is no rhyme or reason for what is happening to the industry at the moment.”