May 31, 2023
Queensland dairy farmers have expressed anger at a decision by major processor Lactalis to cut their milk prices by 5c per litre.
“Given the massive shortage of milk in Australia, especially in Queensland and NSW, this announcement makes no sense at all,” eastAUSmilk CEO Eric Danzi said.
(eastAUSmilk is the industry organisation formed after the amalgamation of the Queensland Dairyfarmers Organisation and NSW’s Dairy Connect.)
“It appears to be a poorly thought-out strategy designed to suppress milk price,” Mr Danzi said.
“It is now likely that the strategy will backfire on Lactalis.
“It is incredibly unlikely that Bega, DFMC and Norco will follow suit and as such Lactalis is likely to lose a lot of milk to other processors from their bold strategy.
“I strongly encourage all Lactalis suppliers speak to all other processors and be blunt about what price would get them to immediately sign a contract with another processor.
“Most dairy farmers would tell you that given cost increases, anything less than a 3c/L price increase is tokenistic and not worth signing a contract for.
“I strongly encourage dairy farmers, both Lactalis and other dairy farmers, that if a processor is prepared to offer a reasonable price increase on this year’s price, be proactive and sign a contract with then immediately.
“Processors who are proactive and prepared to offer reasonable price increases early must be rewarded with farmers signing contracts.”
