WHOROULY dairy farmer John Pethybridge says opening milk prices from most processors has fallen well short of expectations and continues to put an unfair squeeze on farmers.
Lismore-based processor Norco has topped the opening price offerings with $12.35 per kilogram milk solids.
Norco largely caters for the fresh milk and ice cream market and is the nation’s largest farmer co-operative, providing consistently high returns to suppliers.
Bega, Fonterra, Bulla and Saputo are closely matched with their price announcements, keeping a tight market for dairy farmers to continue with their regular processor or opt to switch.
Prices see Bega at $7.90-$8.20/kg MS, Fonterra $8.00/kg MS, Saputo $8.00-$8.15/kg MS, Lactalis $8.40/kg MS, ADFC $8.20/kg MS, Bulla $7.85-$8.65/kg MS, ACM $7.75/kg MS, Ky Valley Dairy $8.00-$8.30kg/MS and Frestine at $8.00/kg Ms.
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Mr Pethybridge, who runs 251 dairy cows on his 800 acre property, said the new price announcement from processors are very disappointing with no consideration for local farmers in the North East after a poor autumn period.
“The dairy industry locally is currently under immense pressure," he said, noting that some farmers had little to no grass in paddocks.
“By having little feed in paddocks farmers outlay added expenses to buy in feed which narrows profit which is tough because processors have not taken this into account.
“We have had some rain but it’s not raining grass as the last few months to date have proven conditions in the field to be very different and testing the industry locally.
“We have been lucky as we have grown extra corn in anticipation for what is happening now to try and manage store feed supply.
“Every farmer is in a different position as those who have irrigation to pastures will have more feed than those who do not, despite recent rainfall.
“A lack of feed on pastures will continue to be a struggle until the weather warms up come spring."
Mr Pethybridge said dairy farmers are locked in to their milk price once they sign their contract with the processor of choice for the next 12 months.
“As a committee member for Dairy Farmers Australia, the opening milk prices from processors are not only poor but fall so short that they have not met dairy farmers halfway," he said.
“Milk processors make a big profit in any event so there should be no reason to squeeze farmers.
“Processors are trying to increase their profit margin and take away from the hard-working farmer.
“I’m a young farmer who works hard, I’m trying to remain optimistic, however, I’m not happy with the overall situation with the current milk prices."
