David Littleproud said his department was investigating ways a temporary 10c levy could be implemented as it would allow customers to have a greater impact than just sharing stories about desperate farmers on social media.
However, Prime Minister Scott Morrison told the Today Show this morning, he’s “sensitive” to the issues faced by farmers, but added: “I don’t want to see an increase in prices for Australians.”
Mr Littleproud, said: “Consumers have huge power here. All those who are outraged on social media would do more for Aussie farmers by paying a ten cent levy than they do by sharing a video on Facebook.
“Consumers need to understand the impact of having few Australian dairy farmers north of the Victorian border would be much greater in the long term.
“If our farmers don’t make it through the tough times, they won’t be there to supply Australia milk in the future.
“The fact is $1 milk has devalued the milk category in the eyes of consumers by making it cheaper than water.
“We are able to facilitate that as quickly as we can. I’ve been at Gympie and Lismore last week sitting at farmers’ kitchen tables telling me they can’t wait any longer, they need relief now.
“That can be lead by everybody and hopefully we’ll get action in the coming week.”
The plan still needs to be backed by supermarkets as well as milk processors.
While Mr Littleproud said the CEO of Woolworths told him it would support the levy if other supermarkets did too, in a statement sent to nine.com.au the company wasn’t as bold.
“We believe a holistic solution involving industry and government is needed to drive meaningful and long-term reform in the dairy sector,” it said.
It added a recent 18-month inquiry by the ACCC into the dairy industry “clearly need to form an important part of the policy discussion.”
The inquiry found there was no relationship between retail private label milk prices and farmgate prices as supermarkets do not set prices for dairy farmers.
Coles also remained uncommitted, saying when asked about the potential levy that it has helped contribute more than $11m for farmers by fundraising and making donations.
NSW farmer Gavin Moore, said the company which processes his milk, Country Valley, has also informed him they’re putting milk prices up for shops.
He said it’s costing him 3.6C a litre more than last year to produce a litre of milk – with prices of feed and other overheads continually rising.
“I don’t think a levy as such will come in, I think it’s more up to the processors to get on board to lift the price,” he said.
“10c a litre yes it’s going to help but it doesn’t alleviate all the costs and rises .”
Queensland milk farmer Wendy Ellis said it has not been made clear to farmers if they’ll get the levy passed onto them, and how.
“The reality is it needs to be 20 cents not 10 but any rise will help,” she said.
“The price of feed still out ways the price increase of our milk unfortunately, feeds prices are just unbelievable.
“From what we have been told yes the levy will go to us, we hope this is true but we haven’t actually been asked or giving any information stating we will get it.”
NSW farmer Shane Hickey, who posted a video saying he was working for less than $3 an hour, is among producers who have taken to Facebook to highlight how tough times are.
Nine.com.au asked industry body Dairy Australia for comment.
