Floods Could Affect Milk Prices

AUSTRALIA - The floods in Queensland are estimated to have so far cost dairy producers more than $50 million.
calendar icon 24 January 2011
clock icon 1 minute read

Adrian Peake from the Queensland Dairyfarmers Organisation says he is negotiating with milk processors and retailers to help subsidise dairy farmers and a price rise is possible.

Worst-affected dairy farmers across Queensland are on the Darling Downs, Central Queensland, Burnett, Sunshine Coast, as well as many parts of South East Queensland. Farmers across all regions have been dealing with floods and or extended wet weather as well.

Mr Peake said more than 60 farms had been cut off entirely, with no access for processes to pick up their milk. Major flood damage to roads over the past few days has meant milk tankers have not been able to get to hundreds of farms. But Mr Peake expects the situation to improve each day.

Mr Peake said the floods would impact milk production for a long time, but believes it is too early to present an accurate extent of the total industry impact or what the cost of the floods will be to the industry overall.

The Queensland Dairyfarmers' Organisation (QDO) has welcomed the news that dairy farmers in all major flood affected areas of the state are now eligible to apply for flood assistance grants and concessional loans and believes the newly announced income support by the Prime Minister will also help many struggling dairy farmers and their employees.

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