September 10, 2009
Australian Senate to investigate milk processing industry
The Australian Senate has decided to conduct an inquiry into the milk processing industry, the prices paid to farmers and how market domination impacted milk producers.
This follows after Tasmania's dairy farmers asked for help saying the prices paid to them were below production costs.
Low prices have been compounded by swamping rains and Tasmanian farmers have reported of difficulties in feeding both their herds and their families.
Tasmanian senator Richard Colbeck said dairy farmers are at the mercy of a small number of large milk processing companies, and the inquiry will look at these ongoing price and market issues while making recommendations to help farmers avoid exposure to unfair markets or unfair contracts.
The inquiry report is expected to be released by February 2010.
