A Luskintyre farmer is urging Hunter dairy producers to band together and stave off the financial hardship that could be on the cards as part of the widening industry crisis.
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The issue of milk prices has dominated media reports in recent days, after news that Australia’s largest milk processor, Murray Goulburn, was $165 million in debt due to a massive drop in forecast profit.
This forced Murray Goulburn’s hand into slashing the price it paid more than 2600 across four states.
Farm gate prices and the advent of cheaper supermarket brand milk have been blamed.
There have been extraordinary levels of community support for farmers since the news broke, and many people have taken up the cause on social media.
But Luskintyre farmer Glenn Haines has used his decades of experience in the industry to come up with a long-term solution he believes will give farmers a better deal and keep their businesses sustainable into the future.
He says Hunter dairy farmers should unite and start their own co-operative – it’s an idea that makes a lot of sense.
Instead of dairy farmers selling their products to large companies like Murray Goulburn, which would then on-sell to retailers, including large supermarkets, the co-operative would supply dairy products from its members directly to the Hunter market.
Mr Haines believes the move would create a scenario where dairy farmers would earn 70c/l for their cows’ milk – which would make their operations sustainable.
It’s reasonable to predict that many Lower Hunter residents would back this idea and buy local diary products.
You don’t have to stretch the memory far to recall the huge support that thousands of people across the region extended to Maitland’s pumpkin farmers.
Even this week, people turned out in droves to The Levee to buy fresh potatoes, cauliflowers, tomatoes and herbs directly from Hunter farmers.
People of the Hunter appear to have respect for food production, which is hardly a surprise given the region’s agricultural history.
The establishment of a Lower Hunter dairy co-op would be another step towards the region becoming a local produce hub, which would benefit residents, businesses and farmers.