WA dairy production falls

Milk production in the South West has fallen which means the state has been forced to rely on trucking milk in from other states.

During one week in February 150,000 litres of milk was imported from South Australia.

Dairy Australia figures reportedly show WA milk production fell by 5.5 per cent in February’s year-on-year monthly milk output figures.

The actual supply of milk is down by 16 million litres in seven months in WA.

Federal Member for Forrest Nola Marino said consumers faced the very real prospect of running out of fresh milk.

“As a dairy farmer, I know that WA dairy farmers are certainly not being offered South Australian prices plus the cost of cartage for their milk,” Mrs Marino said.

“Hard working and highly efficient farmers can’t pay their bills and are as disheartened as I have seen them.

“Basic economics says that if the free market was working properly a drop in production should mean a price rise to producers to stimulate growth.

“Has this occurred? No.”

She said the drop in production was as a result of the supermarket price wars and the pressure their market share placed on milk manufacturers and producers.

The Federal Government has failed to respond to two Senate inquiries in recent years which have made recommendations for an industry overhaul.

Still to come is the carbon tax which will cost every farmer an average of more than $8000 which cannot be recouped because of fixed gate prices.