Monday

May 23, 2016

Showing some #dairylove
Photo taken in March whilst we were sowing pasture on a local dairy farm.

The Australian dairy industry is in strife. Milk prices paid to farmers by the two biggest milk processors were slashed last month to below the cost of production. But not just a price cut from that day - it was done retrospectively for the full financial year. So, in the eyes of those 2 companies, dairy farmers were “overpaid” for 10 months, and they want that money back… with interest. The fallout from this over the last 3 weeks has been understandably a mixture of anger, despair and disbelief. Some farmers have sold all their cows to the meat processors and stopped milking; some have cut back their milking herd. All are cutting costs, cancelling feed orders, laying off staff and sadly some have even taken their own lives after seeing no way out.

We both grew up on dairy farms. Our grandparents were dairy farmers, our parents were dairy farmers, and we were dairy farmers before deciding to take a different direction in farming. We now supply feed into the dairy industry and do a lot of contracting on dairy farms. Our district has milk running through its veins. When the dairy farmers hurt, the whole district feels it.

In the last week the dairy farmer’s plight has gained nationwide attention in mainstream media pushed by a social media campaign raising awareness. There is a growing momentum from both rural and city consumers who are outraged that dairy farmers could be treated this way.

Supermarkets driving down the prices ultimately devalues the products, to the point where it makes it unsustainable for the farmer to grow that product. And this should be a wakeup call for all consumers. We all need to value our food more, and question where it comes from. Good fresh food costs money to produce. Buy local, buy fresh. Support your local farmers… wherever in the world you live.


24 comments:

  1. The plight of the Australian dairy farmers has been in the news here in the US, too. The whole thing is unbelievably unfair and truly disheartening.

    You are absolutely right in your last paragraph. We DO need to value our food more!
    I don't know what the ultimate solution might be. But, some sort of understanding as to what goes into food production is vital. We do our best to educate in our small realm of influence whenever we have opportunity.

    Prayers for the dairy farmers!

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    1. Don’t underestimate the value of the many conversations that you have with your customers. Educating the consumer, even on an individual level, has a lot of worth. Collectively if all farmers could engage in conversations with the end consumer it would be very powerful. Unfortunately a lot of farmers sell to corporations or factories and don’t get that opportunity to talk to the end consumer.

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  2. Its horrendous to see whats happened in the dairy industry..........

    great to see some support from no farming people...........and showing an interest in agriculture...........

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    1. Yes, it is very interesting to see where the support is coming from, and how much this issue has resonated with the Australia public.

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  3. I'm so sorry to hear about this. I echo your hope that it's a wakeup call for consumers. While the impact is the greatest on the dairy farmers themselves, there is a ripple effect, just like you indicated. It affects other farmers who supply feed. It impacts rural communities, businesses and schools when those farmers fail or struggle. I add my best wishes to all.

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    1. Yes it does ripple around the whole community. I was just talking to a courier who delivered some goods on farm. He was quizzing me about the dairy industry because he has had a huge decrease in his work in the last 3 weeks. The flow on effects of these decisions by the corporations will be felt across the board for a long time.

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  4. This is horrendous. I have dear friends who had a dairy farm for years in Maine so I now have a clearer understanding of not only the work involved, but the quality restrictions they must adhere to on a daily basis in order to sell their milk. We need more farmers in the world, not less. Shame on those who want to punish farmers. Can you imagine the companies producing soda being put into this situation. And children need more milk, not soda. Wish I lived closer and I'd sign the petition. Please keep us posted.

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    1. In Australian supermarkets a litre of milk is cheaper than a litre of bottled water or soft drink. I can't quite get my head around that, given how much work goes into producing that litre of milk in comparison to bottling water.

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  5. When I last left New Zealand there was a great deal of concern there too: the dairy industry accounts for about 1/3 of exports and is a very significant non-service sector part of the country's GDP.

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    1. The New Zealand dairy industry is also in huge strife with the very low milk price. One of the two milk processors that have dramatically reduced their prices in Australia is actually a New Zealand company. Their CEO publically stated last week that “What we are doing is driving every cent of money which we can out of Australia back to New Zealand shareholders in this extremely low milk price environment.” Sadly this is not to help the NZ dairy farmers but their NZ shareholders.

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  6. The processors are cutting their own throats by eliminating their sources. I've seen major (the biggest) winemakers drive their supplying vineyards out of business-- then buy them out. Same with a certain large poultry company here. I hope you're diversified enough to take the hit. Best wishes and hugs.

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    1. Thank you Bill for your concern. Yes we are OK and have a lot of options available to us that we can pursue. Our product is not perishable like milk, fruit and veg or wine grapes and we can store it until it is needed.

      In Australia there are 2 main supermarkets that control about 80% of the grocery market. Both supermarkets have aggressively pushed their own brands in the last 10 years which has in turn seen the demise of many smaller companies who can’t compete with tactics used by the powerful supermarkets. This duopoly has seen prices being driven down for not only dairy but some fruit and vegetables are also selling at below the cost of production.

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  7. What terrible news. Farming is hard work and they need the support of the people. The supermarkets slashing prices really does not do anyone any good. France (here in the country) is good about buying local. If it is not grown here quite often we cannot find it in the shops. Frustrating at times when one wants something for a recipe and it is either not grown in France, or it is out of season, but it certainly helps the farmers. Diane

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    1. I think it is wonderful that France takes the approach of encouraging consumers to think about what is in season and use it whilst it is plentiful.

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  8. I have been watching. It is obscene and should be illegal. And, sadly, milk is something that we cannot buy 'direct from the grower' here. Hiss and spit.

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    1. Yes it is illegal to sell unpasteurised raw milk but I don’t think that is necessarily a bad thing. Although I grew up on raw milk with no ill effects, pasteurising the milk minimises the risk of listeria, salmonella, and e-coli among other things. That is not a bad thing.

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  9. Lynda,

    Prayers to Australian Dairy Farmers and those that are affected by this dairy product marketing issue. Very sad.

    Most of the time I wonder if good ole common sense and listening with an open mind would solve and head off a lot of problems.

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    1. Yes, that is what we need... good old common sense and respect.

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  10. The money back plus interest for 10 months - Good heavens, what next. Greedy are those companies.
    It's been on our news about the farmers, dreadful business.
    Good luck.

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    1. It is unbelevaible isn’t it, how they could be treated in this way.

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  11. The price we pay for milk is absurd. Compare it to bottled water. I have a vague youth memory that when a packet of Park Drive cigarettes were 41 cents, a litre of milk was 17 cents. Twenty cigarettes were nearly three times the price of a litre of milk. I can't be bothered with the sums, but milk can now be had for $1 a litre and the same packet of cigarettes is over $20. Back when I was a kid on a dairy farm, we were well rewarded with only milking cows, that admittedly did produce milk with a very high butter fat content, thanks to my father's cattle breeding skills. Some dairy farmers back then could keep their family with just 50 milking cows. I would not argue that such small scale farming is sustainable nowadays but I will say that in a way dairy farmers have been their own worst enemies with their acceptance of the privatisation of their co-ops, that is a co-operative group of farmers who would act their own best interest and be powerful enough as a collective to be able to, if not dictate terms, at least be in a powerful position to argue their case. I know the word union is an anathema to farmers, but that is really what they need to do, that is act like a union and withdraw supply if necessary. Sadly milk goes down the drains without them doing that. I think it is unlikely that fresh milk could ever be imported to Australia, aside from perhaps New Zealand. Australians like fresh milk. That gives dairy farmers some power, but they are not understanding how to use it. Sorry for such a long comment but as the son of a dairy farmer, I do feel a little passionate about the matter.

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    1. I too share your passion for this issue. Your comment might have been long, but my post was longer... considering I mostly only post a photo and a couple of words!

      I really don't know what the answer is. But you are right - collectively the dairy farmers could hold the upper hand in bargaining power, but I doubt you could get them all the bandy together across Australia for the common good. As bad as the situation is for dairy farmers in the southern states, in northern states it is better. They supply more of the fresh milk market and their prices at this stage are looking quite stable.

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  12. Shocking saving, and greed. All should get for free.
    I wish you well-being in your magnificent work.
    Hugs

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  13. This is such a shame...I could rant and rave here at the injustice of it but that won't do any good. I have never been a dairy farmer but I can imagine the commitment and time and work involved.

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