October 7, 2011

New South Wales' dairy farmers lose money amid price war

The milk price war has cost NSW's dairy farmers US$15 million.

A survey of 60 members from NSW Farmers showed their returns dropping by an average of US$1.40 a litre over the last 12 months.

Dairy committee chairman Terry Toohey said the sale of heavily discounted milk by the two major supermarkets is to blame.

He has told a Senate inquiry in Melbourne that the power of supermarkets must be restrained.

He said that they have got too much power and they are dictating the processors and the processors are scared because milk is one product and they also supply a lot of products so they are not game to challenge them as they fear losing some of their other products on the shelves.