At the recent United Dairyfarmers of Victoria conference in Melbourne, Katunga dairy farmer Andrew Schult moved a motion to set an “acceptable” price for milk solids, then to seek legal advice about collectively organising a withdrawal of milk at the current farm gate price.
“If we don’t do this, then I don’t see a future for the dairy industry,” Mr Schult told the conference.
He said dairy farmers were suffering from lack of rainfall, high irrigation water and feed prices and spiralling energy costs.
Mr Schult said dairy farmers were unable to pass on costs caused by “drought and government policy”, resulting in “decay of human dignity and chronic lack of self-esteem and emotional trauma”.
He said the discrepancy between the price paid for milk solids and cost of production was now “well above $10”.
Mr Schult told The Weekly Times the world could not live without the farmer.
He said if farmers set a fair price for their milk, then collectively withdrew from the market if processors failed to pay that price, buyers would be back at the negotiating table within 48 hours.
“We’ve got the ultimate power at the end of the day,” he said.
“But we are price takers because we’re an unorganised rabble.”
UDV Region 3 delegate Greg Brooks supported Mr Schult.
“If you put a price on milk and have a Mexican stand-off, I will guarantee they (processors) will come to the table,” Mr Brooks said.
“We don’t value enough what we do. That’s the problem.
“If we are not prepared to say where we think the price should be on the back of low prices and high costs, then that’s a perfect example of why our (UDV) membership and the people are disappearing.”
Leongatha branch member Tim Jelbart said the fundamental issue with the motion was what was an “acceptable price”.
“It is not a simple question to answer,” he said
“If we said, we wanted $7 a kilogram year in, year out, the world will move past us.
“I agree we need a better price. I think this (motion) has a lot more flaws in it than benefits.
“Every farm has different costs, so what is the acceptable price?”
Region 3 delegate Bridget Goulding said it was time the UDV united to support “each other as dairy farmers”.
“Unless we find some balls in this industry here and start to stand up for what’s right, you aren’t going to have a dairy industry.”
The motion was lost at the UDV conference.
Gippsland dairy farmer Bernhard Lubitz said it was a “cry for help”.