January 27, 2011

Australian Dairy Farmers unhappy over milk price cut

On behalf of the members of Australian Dairy Farmers (ADF), Vice President Chris Griffin expressed concern this week following Coles' decision to cut the price of its home brand fresh milk by up to 33%.

"ADF is concerned that Coles is selling milk at an unsustainable price. This marketing tactic is apparently made without any concern for dairy farmers who work hard to produce a high quality, nutritious food for Australian consumers. The impact of this pricing decision will ultimately flow on to hit dairy farmers at a time when they are struggling to respond financially to years of drought and now floods," Mr Griffin said.

Mr Griffin said the dairy industry was pulling together as a community to assist those farmers who had suffered during the devastating flood crisis.

"Our aim is to get dairy farmers quickly back on their feet in an effort to prevent cost increases for consumers. However, we fear that Coles' decision will come as a blow to many dairy farmers battling towards recovery," Mr Griffin said.

ADF considers that consumers understand the devastation that the floods have caused to all farmers and are appreciative of the efforts of dairy farmers to maintain production levels and thereby prevent the need for milk price rises.

"We are at a loss, however, to understand how setting a new low for the retail price at a time when the price of other commodities is rising, is of benefit to the dairy industry," Mr Griffin said.