Hundreds of Aussie farmers speak out at dairy enquiry

Hundreds of farmers are attending hearings across Australia to voice concerns as part of a an extensive enquiry into the state of the dairy industry.

The enquiry by the Australian Competition and Consumer Commission (ACCC) is looking into the oversupply of milk in Western Australia, practises surrounding the renewal of milk supply agreements and worries over the low price of retail milk in the country.

It is also examining whether the country’s two largest processors have broken the law.

See also: Global dairy production at three-year low

Meeting attendances have been far higher than expected, highlighting the discord among many producers at an imbalance of power between farmer and processor.

One hearing in Taree, New South Wales, had to extend its capacity by four times to accommodate 200 producers, while another in Toowomba, Queensland, had more than 100 dairy farmers turn up having laid out seats for just 30.

Farmers at the meeting voiced concerns over low farmgate prices, the widespread retail of AUD$1/litre (61p/litre) milk in supermarkets, unfairness in producer/processor contracts and the efficacy of the national levy board, Dairy Australia.

Industry on its knees

The enquiry was conceived last August following the global dairy crisis, in which low prices and high production brought the Australian dairy industry to its knees.

Part of the review will look at the actions of co-ops Murray Goulburn and Fonterra Australia in April and May 2016.

Breaking the law?

The processors, who slashed the price they paid for milk in the first half of 2016, will be investigated over whether they “engaged in false, misleading or unconscionable conduct,” breaching the Australian Competition and Consumer Act 2010.

The Oceanian country’s dairy sector has experienced a similar decline to the UK, with milk production declining by 10%, national herd size down 20% to 1.74 million and dairy farm numbers 50% lower at 6,128 in the period 1999-2000 to 2014-15.