June 26, 2007

Price hike for Australian milk

The Dairy Farmers Cooperative in Australia said an increase of 10 to 20 percent will be incurred in farmgate milk prices starting July 1.

Consumers will bear the brunt of milk price jump as 2,000 dairy farmers in Victoria, Queensland, New South Wales and South Australia will be paid an extra three to seven cents a litre for their milk.

Dairy Farmers' Rob Gordon says farm fertiliser, fodder and fuel costs have all risen, although the cooperative cannot be expected to cap the price rise.

He said the price increase is the only way to cover the rising production costs but consumers are assured of better products with the additional price.