NSW milk producers supplying Parmalat have just been hit with the second farmgate price drop since mid last year, prompting further herd sell-offs.
The latest price drop, effective January 1, was a two cents a litre decline, which means suppliers are down a total 5c/l on this time last year.
For at least the next six months, they will be milking at a base price of 44c/l and a maximum, depending on how many hoops they can jump through, of 50c/l.
If nothing changes after that, the spring base price would be just 40c/l.
The Redgrove family, who milk 400 Holsteins at “Rowenvale”, Singleton, received news of the demarcation the same day they last week they were contact by Victorian live exporters chasing dairy heifers.
Consequently, they sold 58 heifers, which are now headed for Japan.
John and Allison Redgrove, with son Daniel and his wife Sarah, have close to half a century of breeding behind their herd.
“I can’t see a future at these farmgate prices,” John Redgrove said.
“I don’t believe Australia wants a dairy industry.
“Companies want to drive big profits at the farmer’s expense.
“Dairy is not an industry you can drop in and out of. We have millions of dollars tied up in our place.”
The Redgroves are midway through a three-year contract with Parmalat, under which the processor has the option to alter the price every six months.
Their milk goes to the Lidcombe factory to supply drinking milk to the Sydney region.
“The part that has really got farmers up in arms is that Parmalat has a ten-year deal with Woolworths,” Mr Redgrove said.
“We thought that would mean price stability for us.
“World markets are going forward, New Zealand prices have picked up $2 a kilogram butterfat and production is going down - even if we remained the same that would have been fair enough but to take money off us under these circumstances is just not right.
“These prices are barely break even.”
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
