Tasmanian Government Media Release - 11 September 2009
The Tasmanian Government is taking up the fight for a fairer deal for the State's battling dairy farmers by lobbying a major national milk processor about the low prices local producers are being paid.
The proposed contract price of around 29 c/L is considerably lower than the rate being paid to interstate producers. The Government is stepping in to support the fight for a fair go for Tasmanian dairy farmers and will do everything in its power to bring the inequity of this situation to light and achieve a fair deal for local producers.
Mr Llewellyn said the Government's aim in any discussions with the company would be to secure a price increase for milk supply that would reflect production costs and enable suppliers to continue production and remain in the dairy industry.
It is very important that National Foods considered a long-term view of dairy farming in Tasmania and reviewed the milk prices offered to Tasmanian dairy farmers as soon as possible.
The Tasmanian Government is taking a long-term view in the present constrained economic circumstances and is investing $400 million to deliver 240,000 megalitres of irrigation water that farmers can use to increase production, drive down production costs and reduce the impact and risk of dry seasons.
National Foods have been urged to also take a long-term view and review the milk prices offered to Tasmanian dairy farmers.