August 25, 2010

Australian dairy farmers bear the brunt of low global demand

Dairy farmers in Australia are being warned not to expect further pay rises until global economic conditions improve.

Bega Cheese chair Barry Irvin says rural communities are struggling to carry the full cost of falling global demand for Australian produce.

He says there should have been a stimulus package for Australian agriculture.

Bega Valley rural businesses are carrying increasingly larger debt loads from farmer creditors after a decade of drought on the NSW far south coast.

Farmers are getting more indebted and their hardship stresses the region's economy, says rural supplier Peter Abramowski.