Tasmanian government urged to help dairy farmers over milk prices

The state government of Tasmania in Australia is being asked to set up a fighting fund, to help dairy farmers campaign against what the state Liberals say are unfair milk prices.

The state's two major milk buyers - Fonterra and National Foods - have dropped their price to just over 20 cents this month, 10 cents less than the cost of production.

Liberal spokesman Rene Hidding tells that beleaguered farmers ring him for support, stating that there are serious threats to long-term health of farming in the northwest region and that they are looking for a good look at fodder subsidies as well as other measures.

Hidding says the dairy farmers are being hit just as hard as those affected by drought, who the state government assists.

The prices, he said, "can have long term damaging influences on the whole Tasmanian economy" and help for the farmers should immediately began.

The state opposition is visiting north-west Tasmania today.