August 2, 2006

Milk shortage forcing Western Australian processors to increase prices

Prompted by dry conditions in Western Australia which have caused a milk shortage, processors in the state are increasing farm gate milk prices.

New Zealand-based Fonterra has announced a one cent a litre increase for spring.

However, the WA Farmers Federation says prices need to be increased further now.

Tony Practico said processors may be reviewing prices now only because they are running short of milk, adding that the present situation of having too many processors for too little milk in Western Australia presents a very inefficient situation.