May 5, 2004

Australian Farmers Concerned Over Fall In Milk Price
 

Dairy farmers in Queensland are worried because a major dairy company has lowered the price it pays for milk.

The farmers are concerned that the decision by National Foods could have a flow-on affect.

Victorian-based National Foods has about 50 suppliers in Queensland.

Wes Judd, from the Queensland Dairyfarmers Organisation, says farmers have received indications that the price drop could be up to 1.5 cents per litre.

"Any decrease is very, very unwelcome at this point in time," Mr Judd said.

National Foods attributed the price drop to poor world prices. But Mr Judd is disputing that.

"They can't justify this because they're very domestic-focused, and they aren't as exposed to the export market," he said.

Mr Judd further argued that world prices are at near records.

The Queensland Dairy Farmers Organisation is calling on the dairy processor to reverse its decision.