The Milton dairy farmer who spearheaded the campaign for industry reform says the Coalition's $22 million plan to appoint a dairy specialist and provide $10 million to help alleviate power costs is too little, too late.
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"So far since Morrison took over as PM about 12 per cent of farmers have exited, Rabobank said this will rise to 25 per cent very quickly," said Robert Miller.
"The industry is unsustainable."
Liberal candidate for Gilmore Warren Mundine welcomed the Coalition plan.
"The dairy farmers have been suffering on the South Coast for far too long and through their lobbying and meetings with myself we've been able to put a proposal together that is acceptable to the Morrison Government," Mr Mundine said.
"Having this Federal Dairy Specialist within the ACCC to force the Mandatory Code of Conduct and look at the overall operation of the industry is a massive step the dairy farmers have been pushing for a while.
"This is fantastic news for our dairy farmers. The Morrison Government is listening to the dairy industry and wants to keep such an important local industry alive."
Mr Miller said dairy farmers were losing $1 billion collectively, so the $22 million Coalition package fell $978 million short of what was required.
"A $10 million package helping us be more energy efficient, or have a better contract with our milk processors isn't going to save us. Processors are queuing up for our milk, there is market demand, but are unable to pay us enough because they can't get satisfactory prices from retailers. Without a reasonable price, we stop or reduce production," he said.
Mr Miller and other South Coast dairy farmers met with Mr Morrison on Monday and with Opposition leader Bill Shorten on Wednesday. Mr Miller said the meeting with Mr Shorten was positive.
"He was well briefed and fully understood the dairy market failure. He recognised that farmers were subsiding consumers to the tune of $1 billion a year by producing milk at a greater cost than price received. Also he recognised that in a drought we can't lower our costs, but need a price rise to stay viable. He recognised the price ceilings being imposed by the major retailers.
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"We are broke farmers exiting the industry, because the retail prices haven't moved with costs of production. We now have a growing domestic milk shortage . A milk trading platform as spruiked by [Agriculture Minister David] Littleproud isn't needed. There is competition for milk, but just not at a fair price to farmers as the retailers have imposed a retail ceiling on prices."
Mr Miller was critical of the plan to appoint a dairy specialist to the Australian Competition and Consumer Commission.
"By Morrison adding a dairy specialist to the ACCC , a consumer orientated body, is a confusing statement as the ACCC completely got the $1 milk situation wrong, and cost many dairy farmers their livelihood."
