Struggling South Australian dairy farmers have cautiously welcomed Coles and Aldi’s transfer to extend the price of their non-public label milk by 10c a litre.
Nevertheless farmers say the brand new value — which brings the chains in step with Woolworths’ 10c a litre improve a month in the past — will solely restore their monetary place of eight years in the past.
SA Dairyfarmers’ Affiliation president, and South-East producer, John Hunt was heartened that this week’s supermarkets’ value rise could be handed on to farmers.
“It’s a step in the right direction,” he mentioned.
However Mr Hunt mentioned, in actual phrases, the worth rise solely moved farmers to an analogous place to the place they have been in 2011 when the milk value warfare started.
Since then, greater than 20 per cent of SA dairy farmers having exited the trade, and nationally greater than 1000 farmers have ceased their dairy operations.
“We’ve had to deal with $1 a litre milk since 2011 and in today’s money that $1 a litre milk is now worth 89c a litre,” Mr Hunt mentioned. “The change by the supermarkets really only returns us to the same price we were at in 2011.”
Including to the stress, Mr Hunt mentioned dairy farmers’ value of doing enterprise had risen by 25 per cent up to now three years and there was not more likely to be any reduction from this within the close to future.
He’s hoping assist for the dairy trade retains rising.
“One of the key things now is consumers continuing to support local producers,” he mentioned.
“We’d love to see the good sentiments towards the dairy industry continuing.”
Dairy farmer Trent Thorpe was one of many farmers that benefited from Woolworth’s milk value rise a month in the past.
He’s a part of a household farming operation that features a 300 acre dairy at Clarendon, operating 150 Holstein/Friesians, and a beef operation close to Peake.
The household provides into Woolworths branded milk by dairy processor Parmalat. “The 10c a litre price rise has helped, but then grain and hay prices have also gone up this past year, with the way the season went,” Mr Thorpe mentioned.