Increasing milk supply for dairy farmers in Australia could be a huge boost for dairy industry.
But the Government’s plan to increase dairy production by 25% is causing some problems for dairy farms in the South Australian and Queensland regions.
Dr Richard Bunn, the chairman of the Dairy Farmers of SA, said there had been a shortage of milk for some years.
“The demand is really high and it’s not being met at all,” he said.
“It is a huge issue in our industry, especially in the SA region.”
Mr Bunn said that the problem was not caused by a lack of milk supply but by the state’s current milk pricing policy.
“We’re actually in a bit of a mess right now, with prices really going down across the country and we are getting an absolute shortage,” he explained.
“There’s been no milk production for years in SA, so that’s really a bit worrying.”
In Victoria, milk production is currently at a historic low of 1.5 million tonnes.
Dr Bunn also said that a significant amount of dairy farms were not being able to meet the demand for milk in the region.
“They’re not being paid for their milk, which is an absolute disaster,” he told AM.
“For some reason they’re not getting paid.
It’s not getting any milk, and we have to pay the farmers for the milk they produce.”
Mr Smith said that if the Government had been able to increase the number of dairy farmers who had milk production, then there could have been a greater supply.
“If they had just increased the amount of milk producers in SA that would have given them a bigger increase,” he concluded.
“So, we’re going to have a huge milk supply here in SA and hopefully that will bring some more milk to the market.”
I think it would be great to see that milk coming through the market, but unfortunately we’re not seeing it.