October 19, 2007

Drought forces slaughter of 2000 dairy cattle in South Australia

Around 350 dairy farmers in South Australia (SA) were forced to cull their milking herds by more than 2000 because of the drought which resulted to water shortages and high grain prices.

The state's herd is down from 7560 last year to 5550.

The State Government's lead agricultural agency, Primary Industries and Resources (PIRSA), estimates that will the herd will be further down to 4350 by next winter.

Dairyfarmers Association of SA chief executive Ken Lyons said milk production was down about eight percent on this time last year. Farmers, however, were getting "the best prices they've ever had" because world milk stocks are low and high international prices have flowed to the farm gate.

However Lyons expressed confidence that the industry can bounce back.

PIRSA food and wine executive director Don Plowman warned Riverland councils to brace for major irrigated industry losses.

He predicted the value of crops this year would be down almost A$400 million from A$551 million in 2005/06 based on a 20 percent water allocation to irrigators.

The Department of Water, Land and Biodiversity Conservation said the major issue facing SA was River Murray salinity. Spokesman Jarrod Eaton, however, signalled the threat of algal blooms was increasing.

Water Minister Karlene Maywald admitted it would take SA a decade to recover from the drought. She said there will be enormous fall-out in regional communities. She also revealed state and local government were close to signing a Memorandum of Understanding on water use if the drought continues.