Kauri
E/W Learner
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The West Australian today...
Milk drought looms: farmers
REGINA TITELIUS
WA could run out of fresh milk this summer and may have to import reconstituted milk from interstate or overseas, WAFarmers said yesterday.
The organisation's dairy spokesman Tony Pratico said a milk shortage was imminent because many dairy farmers struggling to make ends meet had switched to the cheaper option of winter production.
He said it would be naive to believe that the State's milk processors would favour Victorian or New Zealand powdered milk over imported milk from such countries as Chile and Argentina which produced the world's cheapest milk but did not necessarily have adequate quality control.
The industry was already on its knees, with farmers leaving at an alarming rate and more would leave if a better price could not be secured.
"It's not a matter of talking about whether the industry is going to collapse because we're already here, it's already happening," Mr Pratico said.
The number of dairy farmers in WA had dropped to 260-270 as farmers struggled to make ends meet by getting an average price of just 27 ¢-28 ¢ a litre.
A price of 35 ¢ a litre, which was comparable to what farmers got in the Eastern States, would be a good starting point to making dairy farming viable.
An attempt by the WA industry to establish a cartel to negotiate prices with milk processors was thwarted by the Australian Competition and Consumer Commission in a draft determination on Monday.
Agriculture Minister Kim Chance yesterday expressed disappointment at the ACCC's initial ruling and said he would try with the industry to get a positive outcome from ACCC.
Mr Chance acknowledged that WA could have a milk supply shortage this summer but said if processors were to succumb to imports, they were likely to come from Victoria and New Zealand rather than other countries. WA Independent Grocers Association president John Cummings said supermarket giants were "the only winners" with milk. He said the dairy industry's problems could be solved by supermarket giants cutting unfair profit margins rather than lifting the retail price.
A spokesman for National Foods, one of four processors in WA, said if there was a milk shortage, the company would use existing WA milk supplies for table milk and have to consider limiting production of dairy products. The spokesman did not believe reconstituted milk would be imported.
Coles and Woolworths did not reply to requests for comment.
Milk drought looms: farmers
REGINA TITELIUS
WA could run out of fresh milk this summer and may have to import reconstituted milk from interstate or overseas, WAFarmers said yesterday.
The organisation's dairy spokesman Tony Pratico said a milk shortage was imminent because many dairy farmers struggling to make ends meet had switched to the cheaper option of winter production.
He said it would be naive to believe that the State's milk processors would favour Victorian or New Zealand powdered milk over imported milk from such countries as Chile and Argentina which produced the world's cheapest milk but did not necessarily have adequate quality control.
The industry was already on its knees, with farmers leaving at an alarming rate and more would leave if a better price could not be secured.
"It's not a matter of talking about whether the industry is going to collapse because we're already here, it's already happening," Mr Pratico said.
The number of dairy farmers in WA had dropped to 260-270 as farmers struggled to make ends meet by getting an average price of just 27 ¢-28 ¢ a litre.
A price of 35 ¢ a litre, which was comparable to what farmers got in the Eastern States, would be a good starting point to making dairy farming viable.
An attempt by the WA industry to establish a cartel to negotiate prices with milk processors was thwarted by the Australian Competition and Consumer Commission in a draft determination on Monday.
Agriculture Minister Kim Chance yesterday expressed disappointment at the ACCC's initial ruling and said he would try with the industry to get a positive outcome from ACCC.
Mr Chance acknowledged that WA could have a milk supply shortage this summer but said if processors were to succumb to imports, they were likely to come from Victoria and New Zealand rather than other countries. WA Independent Grocers Association president John Cummings said supermarket giants were "the only winners" with milk. He said the dairy industry's problems could be solved by supermarket giants cutting unfair profit margins rather than lifting the retail price.
A spokesman for National Foods, one of four processors in WA, said if there was a milk shortage, the company would use existing WA milk supplies for table milk and have to consider limiting production of dairy products. The spokesman did not believe reconstituted milk would be imported.
Coles and Woolworths did not reply to requests for comment.