50 farmers have left QLD dairy industry - 40 more to go

Around 50 farmers have left the Queensland dairy industry, and a further 40 are expected to leave this year as a result of the supermarket price war on milk, according to the latest AgTrends report from the Queensland government.

The report confirmed the ongoing effect of the supermarket milk war and the on-farm impact of  Coles private label $1/litre milk offering. The report found that financial returns to dairy farmers have dropped and milk production in Queensland is suppressed and not meeting the state demand for milk.

Queensland Dairyfarmers’ Organisation president Brian Tessmann said the results would not be news to dairy farmers, but must serve as a wake-up call to consumers and the government.

”The bottom line is that the supermarket milk war is creating a real threat to Queensland’s milk supply chain and for our state to continue to supply itself with milk,” Tessmann said.

“We have already seen some 50 farmers exit the industry since the milk war began and it is wrong that we could yet lose a lot more. The impacts are devastating and we are losing farmers we should not be losing, including progressive young farmers.

“Simply, milk at $1/litre, despite the ridiculous claims from Coles to the contrary, is not a fair and sustainable price for fresh milk. It is having seriously negative impacts right through the supply chain to dairy farming families.”

Tessmann said the report found that about half of the Queensland dairy farm population was unsure whether they would still be in the industry in the next five years if milk prices and farm financial returns do not improve.

He urged consumers to buy branded milk products which represent a more realistic value for fresh milk and called on the government to address these imbalances in the market with a compulsory code of practices and a supermarket ombudsman.