An $11.4 million support package for Victorian dairy farmers struggling with retrospective milk price cuts has been announced.
The Victorian government is contributing $4.5 million to the support package, Murray Goulburn is contributing $1 million to the fund, the Gardiner Foundation is providing $1.4 million and Dairy Australia $2.4 million.
The Victorian government also announced $1m in mental health funding for the industry last week.
The package follows decisions by two major dairy processors, Murray Goulburn and Fonterra, to drop the price they pay farmers for milk on the back of lower global demand.
Some farmers have said the price they are now being paid is less than the cost of producing their milk.
The $11.4m funding is expected to go towards dairy extension programs, community initiatives and financial counselling services. The Victorian government said it will determine how it would spend the its $4.5m contribution in the coming weeks, following discussions with farmers.
Consumers, meanwhile, also appear to be getting behind dairy farmers by responding to calls to buy branded milk, rather than heavily discounted private label milk.
Behind the movement is the belief that Coles and Woolworths have driven down the price of fresh milk, which has in turn forced processors to cut their payments to farmers.
In a recent ABC Rural report, Agribusiness analyst David McKinna estimated that $1 a litre milk has transferred about $250 million a year from the dairy farmers and processors to consumers and supermarkets.
Pictures have been shared across social media channels over the past week showing branded milk disappearing off supermarket shelves.
Consumers have also questioned whether the supermarkets were deliberately holding back branded milk until their own brands sold, a claim denied by both Woolworths and Coles.
