The head of a North East dairy project has called for positivity in the industry during a week where farmers were rocked by yet another cut in milk prices.
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Murray Goulburn has announced an opening price of $4.31 per kilogram for milk solids next season, starting July 1, after it had already cut its price from $5.60 to between $4.75 and $5 in April.
Alpine Valleys Dairy Pathways Project chairman Stuart Crosthwaite said young farmers were the long-term key to the dairy industry.
“We believe that ultimately we need a cultural change in the community and people need to understand the value that dairy provides to the local economy,” he said.
“The milk price stuff is obviously a real dent in our efforts and what we’re trying to do.”
The AVDPP was set up to help grow the North East dairy industry and has promoted more education for budding farmers and succession plans for the older business owners.
“Our industry is one of the more resilient parts of the dairy industry … but it’s going to take a bit of a hit in the next 12 months,” Mr Crosthwaite said.
“We do believe there’s a positive future here.”
He said the federal government could help farmers in the short term by providing more resources to protect water and land for agriculture, but also needed to invest in long-term education.
The project won the support of Cathy McGowan, who told SBS this week it was a way to transition the dairy industry into 21st century.
“My job is to take this plan to Canberra and say ‘we’ve learned some really good lessons here, can the dairy industry come and look at how we’ve used education, local government and we’ve got together as a whole community to actually take it into the future?’,” she said.
The independent candidate rejected Jacqui Lambie’s suggestion of a 50-cent levy on drinking milk, saying she was a “free-market person” and it would interfere with the international market.
Long-serving Devondale Murray Goulburn director Ken Jones said the decision to start the milk price at $4.31 was a difficult one, but the group predicted the price could rise to $4.80.
“It’s put an enormous amount of pressure on the board, but we’ve been elected to do a job,” he said.
“A 1-cent movement in currency can be a $13 million change (for Murray Goulburn).”
Mr Jones said any possible milk price rises in the future would be dependent on exchange rates in the international market either holding or improving.
