Curtin University dairy farmer survey highlights cost pressures

A national survey has laid bare the price crunch biting dairy farmers. Here’s what they had to say about the industry’s financial future.

Financial pressures are pushing dairy farmers to reconsider their future in the sector, a new nationwide survey has revealed.

More than 140 dairy farmers from across Australia took part in the survey, commissioned by Perth-based Curtin University, with findings detailed this week in the international publication Scientific Reports.

Responding anonymously, farmers told the survey low farmgate prices, exorbitant electricity bills and government red tape were forcing them to assess whether they should switch to beef or cropping.

“We are thinking about getting out since what’s the point of working seven days a week and going bankrupt and being stressed all the time,” a Victorian farmer told the survey.

A NSW farmer said: “Basically, it’s a cash flow situation. We make a lot of money but spend a lot of money to keep running.”

Another Victorian farmer told the survey: “The rising cost of power, fertiliser and operation costs are draining us with taxes imposed by the government and is impacting our business with a cash flow problem. Every time a new idea comes about, it’s a cost for the farmer.”

A WA dairy farmer said: “Just basically the cost of running (the farm) has gone up, and the income has gone down. Thus, labour and infrastructure are harder to secure.”

A Tasmanian farmer told researchers he was thinking of leaving dairy because: “Input costs, capital outlay, return on investment and red tape which pushes our costs higher.”

More than 140 dairy farmers across Australia took part in the survey. Picture: Zoe Phillips

The research was not linked to Dairy Australia or any dairy advocacy group, with funding for the study in part coming from registered environmentalist charity Farm Transitions Australia.

Curtin University adjunct processor Clive Phillips led the research and said it painted “a sobering picture of low satisfaction with the industry, causing some farmers to consider leaving it.”

“Our survey was conducted in 2023 and used a mixed methods approach – obtaining both quantitative and qualitative responses to gain a detailed understanding of farmers’ difficulties,” Dr Phillips said.

WA Farmers dairy president Ian Noakes said dairy farmers throughout Australia were frustrated by the low prices paid at the farmgate, and the devaluation of dairy produce at the retail checkout.

“I wrote to all the processors in WA before Christmas and none have bothered to respond. WA is producing 330 to 340 million litres (per annum) and the consumption is roughly 280m litres — does it have to fall below 280m for everyone to wake up?”

Australian Dairy Farmers president Ben Bennett said processors needed to better explain to consumers the value of dairy, calling on the Australian Dairy Products Federation to “lift their game.”

“You don’t need a survey to tell you that farmers are frustrated with the current prices,” he said. “Input costs keep going up, up, up but there’s been no acknowledgment of that from processors or supermarkets.”

The ADPF have been contacted by The Weekly Times for comment.