Editorial: Widespread support for our farmers

EDITORIAL: THE much-awaited support package promised by the caretaker Federal Government will bring a sigh of relief to many Tasmanian dairy farmers.

THE much-awaited support package promised by the caretaker Federal Government will bring a sigh of relief to many Tasmanian dairy farmers.

The relief pledge will go some way to steadying those many farmers who were seriously shaken by the unexpected recent decisions of the nation’s two dairy processing giants to cut farmgate milk prices.

Deputy Prime Minister Barnaby Joyce pledged $55 million in concessional loans for Murray-Goulburn and Fonterra suppliers, saying it will be available this year, in addition to clearing the way for $500 million in concessional loans over 2016-2017 and 2017-2018.

It is heartening that the state’s $442 million dairy sector, which employs 1400 Tasmanians, has received the support it deserves.

Of course, this commitment will potentially add to dairy farmers’ debt and will require a serious strengthening of prices to have a positive effect on the sector in the longer term.

Mr Joyce’s vow that a re-elected Coalition Government will work with the dairy industry to establish a commodity milk price index is also very welcome. An index has the potential to bring greater transparency and market signals to domestic and global milk prices.

In addition to the pledge of federal support, the Tasmanian Government has expanded its assistance package to reallocate $140,000 to farmer support programs, with Primary Industries Minister Jeremy Rockliff quite correctly describing dairy as a “pillar of Tasmanian agriculture”.

The Australian Securities and Investments Commission and the Australian Competition and Consumer Commission are investigating the actions of Fonterra and Murray Goulburn, who cut the farmgate milk price from 42c to a 37c a litre.

Farmers fiercely criticised the price cuts, saying they made their farms unprofitable. They also said the cuts are retrospective for the season, a claim denied by the processors.

Some farmers have said they will be forced to leave the industry, and some have already started thinning herds. It is a sad and concerning situation.

However, every cloud has a silver lining and if there is one welcome factor to emerge from this otherwise ugly situation, it is that the dairy sector has huge support from the wider community.

Tasmanians have been rallying around dairy farmers by opting to purchase branded milk rather than the cheaper supermarket brands. There are reports of a significant upswing in branded milk sales over generic non-branded milk.

There is a noticeably fierce loyalty in the Tasmanian community for our farmers. The agricultural sector is perceived as a foundation stone of the economy and the farmers who work in it are highly regarded as the providers of the food and beverages we eat and drink. This goodwill is a result of Tasmanians, whether they live in the city or country, having a closer connection to rural life than many interstate and overseas can even dream about.