Milk prices are continuing to cause more pain for farmers, a peak body is warning, with a leading processor announcing it will pay less for the product.
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Parmalat announced a two-cent reduction on last year’s price, with farmers told to expect an average price of 44.1 cents per litre in 2017. Erika Chesworth, the Dubbo-based chairwoman of the NSW Farmers’ Association dairy committee said continuing price reductions were affecting the day-to-day running of farms.
"Recently there has been a spike in the number of hardworking farmers exiting the industry due to unsustainable prices often below the cost of production, which leads to a lack of confidence in the future of NSW dairy farming,” she said.
The dairy committee is contributing to an ACCC inquiry, which it hopes will answer questions about milk price and alleged anti-competitive behaviour in the industry. "Farmers need greater transparency about milk pricing decisions, and the dairy committee will be looking to increase its direct engagement with processors," Ms Chesworth said.
