ADF president Ben Bennett hits back at processor defence

Processors say dairy farmgate prices are 14 per cent higher than three years ago. Farmers say fuel, fodder and other costs are galloping far ahead of that figure.

Galloping inflation means fuel, fertiliser and fodder costs are outpacing any farmgate gains claimed by processors, the Australian Dairy Farmers president says.

Ben Bennett has hit back at the Australian Dairy Products Federation after the milk processor group defended this season’s farmgate prices.

ADPF chief Janine Waller noted the estimated weighted average farmgate milk price of $7.94 to $8.20 per kilo milk solids was up to 14 per cent higher than the 2021-22 financial year.

Mr Bennett said the ADPF’s 14 per cent defence failed to reflect the bigger picture, with interest rate rises hitting young farmers in particular.

“It is true that milk prices are higher than they were three years ago,” the southwest Victorian farmer said.

“However any farmer will tell you they’re facing significantly higher input costs this season. “Interest rates have doubled, as all householders know.

“Overall, fuel prices rose six per cent in the past year, and are 34 per cent above where they

were five years ago.

“Fertiliser costs are up 18 per cent year-on-year and 42 per cent on 2019.

“While processors may feel a 15 per cent price drop is modest, dairy farmers aren’t feeling

quite as relaxed.”

Following the start of the new financial year, the ADPF defended the cut to farmgate prices compared to the 2023-24 financial year.

“The last couple of year’s record-high milk prices, led to an influx of international dairy products, resulting in unprecedented imports and high consumption of cheaper overseas alternatives,” Ms Waller said.

“We want to ensure Aussie families can continue to enjoy affordable, locally made and

branded milk, cheese, yoghurt, butter and ice cream in their homes.”

Mr Bennett and United Dairyfarmers of Victoria president Bernie Free recently met with Victorian Government officials to discuss the impact of the southwest Victorian green drought on primary production.

“Hay prices in south west Victoria, one of the driest dairying regions, are around 30 per cent

above the five-year average,” he said.

“Parts of this region are experiencing their lowest rainfall on record.”