The Queensland Dairyfarmers’ Organisation (QDO) has refuted Parmalat Australia’s “unprecedented attack” on the industry.
French-owned Parmalat is the largest buyer of milk from Queensland dairy farms.
Earlier this month, Parmalat slammed producer attitudes in its submission to the Fair Milk Price Logos Bill, currently under investigation by a Queensland parliamentary committee.
It accused dairy farmers of having a protectionist mindset, and said the sector had a disinterest in being nationally competitive.
On Friday, QDO president Brian Tessmann said the entire dairy industry was “surprised and disappointed” with Parmalat’s comments to the parliamentary committee.
“Unfortunately, the cost of milk production rises the closer you are to the equator,” Mr Tessmann said.
“The warmer climate, lower quality tropical pastures and fodder all contribute to an overall higher cost of milk production.
“In addition, processors in Queensland require constant year round milk production to ensure shelves can be stocked 365 days per year.”
Mr Tessmann said lower production costs in southern Australia stem from the cooler climate and the seasonal spring production system that relies on the availability of temperate pasture.
Queensland farmers are currently involved in the same dairying improvement programmes, including those made with animal genetics.
“Since 2011, times have been tough for both processors and farmers alike,” Mr Tessmann said.
“Both farmers and processors have shared in the pain caused by the introduction of $1 per litre milk.
“At that time, Parmalat was forced to implement a 3 cents per litre drop on the price it paid its suppliers.”
Mr Tessmann said the QDO was committed to seeing all milk sold in Australia sold for a sustainable price that benefitted farmers and processors equally, and ensured a fair rate of return for the industry as a whole.
“It is indeed strange that the Fair Milk Logo bill would evoke such concern from Parmalat,” he said.
“The logo would exist solely as a voluntary consumer information tool, not in any way resembling a compulsory “quasi regulatory” system.
“The Fair Milk Logo simply empowers consumers to identify and hopefully support local fresh milk products or processors that pay a sustainable price to Queensland dairy farms.”
Mr Tessmann said the QDO would continue to work with Parmalat and other processors to improve the sustainability of Queensland milk production in order to ensure the viability of the state’s dairy industry.
“The Fair Milk Logo simply builds upon this commitment, and will in the long term deliver for consumers, retailers, processor and farmers.”
