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Report on Sustainable Milk Released by WAFarmers and CBG

10 December 2012

AUSTRALIA - A report outlining sustainability in milk prices has been released by the Western Australian Farmers Federation (Inc.) (WAFarmers) Dairy Section Council and the Collective Bargaining Group of WA (CBG).

The Dairy Section Council and the CBG instructed Primary Consulting Services to calculate the farmgate milk price that would provide a typical Western Australian dairy farmer with a sustainable return for their dairy enterprise.

WAFarmers Dairy Section President, Phil Depiazzi, said there were no surprises in the report which clearly showed current farmgate milk prices were not sustainable.

“WAFarmers’ long held position is that current farmgate prices are not sustainable. There is not enough return on asset to encourage new entrants into the industry and not enough return on capital for current dairy farmers to invest in their infrastructure,” Mr Depiazzi said.

“Dairy farmers need an increase to farmgate milk prices to create a viable return on asset, which will lead to a sustainable Western Australian dairy industry.”

Mr Depiazzi said WAFarmers would now take the report to the major processors, Brownes, Harvey Fresh and Lion, and the major supermarkets, Coles, IGA and Woolworths.

“We will seek meetings with these companies to ensure they are fully aware of the effect their policies and strategies are having on the farm,” he said.

“I ask Western Australian consumers to support local farmers by purchasing WA-based processor-branded dairy products,” Mr Depiazzi concluded.

WAFarmers is committed to a sustainable future for the Western Australian dairy industry and will work with industry, processors and supermarkets to ensure a fair farmgate milk price for Western Australia’s dairy farmers.

The Report was commissioned by the WAFarmers Dairy Section Council and the CBG and highlights the value of this partnership in delivering clear and accurate information to support dairy farmers in Western Australia.

TheCattleSite News Desk

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