Shoalhaven and Southern Highlands dairy farmers have had robust discussions about the state of the troubled dairy industry in Australia with Shadow Minister for Agriculture Joel Fitzgibbon.
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Gillmore Labor candidate Fiona Phillips and Mr Fitzgibbon met with dairy farmers at a kitchen-table discussion in Milton on Wednesday, February 6.
Mr Fitzgibbon said the talks were part of series he has held across the country as he seeks to address problems plaguing the dairy industry. The information he has gathered should allow him to “hit the ground running” if Labor wins government, he said.
“The fact is that our dairy farmers are in real trouble and they have been in real trouble now for at least the last six years when their challenges have been exacerbated by drought,” he said.
Mr Fitzgibbon said the Opposition would have more to say on firm plans at a future date, but policies needed to ensure dairy farmers received a reasonable return on their investment.
“We did talk today specifically about how we guarantee dairy farmers get a reasonable return for that product,” he said.
“We can talk about levies at the retailing end, but it is very difficult to make sure that gets back to the dairy farmer.”
Stony Hill dairy farmer Robert Miller, who hosted the discussions at his family’s property Narrawilly, said Mr Fitzgibbon understood their concerns.
Some talks centred on the mandatory dairy code of conduct. Mr Miller said the code of conduct would give farmers some bargaining room but it needed to be put in place as soon as possible.
A code of conduct isn’t a panacea.
- Shadow Minister for Agriculture Joel Fitzgibbon.
Mr Fitzgibbon said Labor had called for a mandatory code of conduct for five years. His party supports a mandatory code, but he cautioned it wouldn’t be a remedy for all problems.
“We should have had one now for at least four years and we remain supportive of it but a mandatory code is only as good its design and we need the government to get on and produce something that is going to be meaningful,” he said.
“A code of conduct isn’t a panacea. It won’t be a magic solution to all the problems of our dairy farmers who are not only facing increased costs but are being squeezed by the processors and the retailers.”
Mr Miller, who brought the plight of dairy farmers into sharp focus in August, said farmers needed a sustainable price increase.
“We have to negotiate some way to get a price rise. We’ve had $1 a litre milk for eight years,” he said.
“Something is seriously wrong with the pricing mechanisms if we can’t get a price rise.”
The drought has compounded financial issues dairy farmers have faced since $1 milk was put on the supermarket shelves, Terara farmer Sue Boyd said.
We’re still trying to pay for hay that we bought six and eight months ago
- Terara dairy farmer Sue Boyd
Despite steady rain over summer, some farmers are still paying debts from feed purchased during the drought, and the costs associated with planting forward crops.
“We’ve had no additional funds to put away for drought periods. This drought has exacerbated the financial position we’re in,” Mrs Boyd said.
“We have had good summer rain here in the Shoalhaven. Most people don’t understand that doesn’t change everything. We’re still trying to pay for hay that we bought six and eight months ago.”