Federal Agriculture Minister David Littleproud’s issued the alarming warning as he pushed for an extension and potential expansion of a drought-linked temporary 10-cent milk levy.
He said dairy farmers needed help from supermarkets, while the benefits of a new mandatory code of conduct level the playing field.
In the past year, 500 dairy farmers have left the industry amid pressure from drought and market conditions.
“If they’re not treated fairly then we’re going to get a tipping point,” Mr Littleproud told reporters in Canberra on Wednesday.
“There won’t be enough dairy farmers in this country to continue to supply fresh milk for Australians right around the country.”
Mr Littleproud renewed his criticism of the supermarkets after curbing his attacks during the coronavirus panic-buying spree.
“Time’s up now,” he said.
“They did a good job restocking the shelves. But that’s just one thing, that makes them a quid.
“They’ve got a moral responsibility to make sure we’ve got a dairy industry after COVID-19 and in the future.”
The deputy Nationals leader said processors were also to blame for stacking the market against farmers.
“I don’t want to see Australians get to a point where we’re importing fresh milk,” he said.
Queensland Dairy Organisation president Brian Tessmann said the levy should be applied to other dairy products like cheese and long-life milk.
“There’s no cheap milk overseas, it’s only inferior product that you have to pay more for, so we have to look after the local dairy farmers or we won’t have a local supply,” he told ABC radio.
Mr Tessmann said profits had taken a hit after cafes and restaurants were smashed by shutdown measures, offsetting any gains from increased supermarket sales.
Labor’s agriculture spokesman Joel Fitzgibbon accused the federal government of only being interested in the plight of dairy farmers because of a looming federal by-election.
“Unfair, low farmgate milk prices are as real today for farmers as they were prior to the drought, the bushfires and COVID-19,” he said.
He said the competition watchdog should investigate a minimum milk price rather than farmers relying on a plea to supermarkets.
Australian Associated Press
