Dairy Connect - Don’t sideline Ag in government support
- By: "Farm Tender" News
- Regenerative Ag & Carbon Farming News
- Apr 08, 2020
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Dairy farmers are in danger of being sidelined in historically the largest ever tranche of Government subsidies targeting small business across Australia.
This danger was being greatly magnified by the global COVID–19 pandemic, according to industry advocacy group Dairy Connect Farmers Group President Graham Forbes.
“Dairy farms are small businesses too and they’re still suffering from years of drought and recent summer bushfires along with ongoing elevated levels in the costs of fodder and energy,” he said.
Dairy producers are still struggling to lift low farm-gate prices from processors for their high value product.
“Given the recent announcements by the federal government regarding support for business, it is important that the agricultural sector is able to avail itself of official subsidies.
Dairy Connect CEO Shaughn Morgan said “While dairy farmers are still having their milk collected by their processors, these farmers are still receiving, in many instances, farm-gate prices below the cost of production.
“While the dairy mandatory code of conduct may address this challenge in the long term, the new code will not assist in the short-term.”
Shaughn Morgan praised retailers for working to increase demand for dairy milk and said processors were struggling with soft export demand and a severe slump in demand from the food service industry domestically.
“Retailers are maintaining and, in some instances, increasing demand for fresh nutritious milk and dairy produce due to its nutritional value,” he said.
“Processors are experiencing challenges with respect to the severe contraction of the route trade and the demise of the professional services area within the economy.
“Retailers have a role to play to ensure that the value chain is profitable at all stages and that must ensure a sustainable return to their processors which, in turn, can ensure that dairy farmers receive a sustainable farm-gate price.
“Part of the profits being obtained by retailers today must be passed back down the value chain.
Shaughn said that dairy farming enterprises should be able to seek government assistance through the stimulus packages that have been announced during the current COVID–19 crisis.
“In that regard, it would be useful if government support could be directly allocated to food and agriculture generally and to the dairy industry specifically,” he said.
“Dairy is coming together to present a common position in respect to many issues as a consequence of Coronavirus impacting on the Australian economy and our social fabric.
“It is vitally important that industry bodies, which are generally ’not for profit’ who give any profits back for services to their members.
“Many of these industry bodies have seen a massive drop in returns to their respective organisations because of bottoming-out in the stock market.
“Industry bodies need support to ensure that they can survive until the markets rebound.
“Industry bodies must be able to continue to provide the necessary support that farmers require, ranging from being informed of the current issues of COVID-19 through to matters to which they must address including bio-security and on-farm staff or visitors who may be found to have been exposed to Coronavirus.”
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