Customers must pay more for #dairy: processors

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Western Australia’s three principal dairy processers say specialty products, higher domestic prices and export opportunities will improve farmer returns.

The heads of Brownes, Harvey Fresh and Lion took to the stage at the WA Farmers 2014 Dairy Conference, where they led a panel discussion on how they planned to increase the state’s milk supply for domestic and export use.

The conference theme was ‘Investing in WA Dairy’ and WA Farmers dairy section president Phil Depiazzi told the attendees that more needed to be done to bring the average farm gate milk price to a more sustainable level.

Mr Depiazzi says opportunities for export were arising, but the industry was in danger of letting opportunities ‘pass by’.

He says the April takeover of the family-owned Harvey Fresh by international dairy company Parmalat was a positive for the industry as the company was focussed on export.

The three processor representatives gave details of existing export plans and future opportunities.

But Lion Dairy and Drinks general manager Peter West says more could be done to improve the domestic market.

Mr West says dairy is a ‘lousy industry for return’ and Australian consumers need to reflect the value of dairy by paying more for products.

«The economic return for both farmers and processors isn’t where it should be,» he said.

Harvey Fresh general manager Paul Lorimer says he feels the price the processor is offering its suppliers is competitive and the company would reassess farm gate prices in another three years.

Mr Lorimer says the farm gate price needs to move, but it should move in a sustainable format.

«To make one big jump would be irresponsible of all parties in relation to where we need to be,» he siad.

«We need to make sure the change occurs in a controlled manner and provides sustainability for the industry.»

In a speech at the conference Mr Lorimer made a point of professing the fairness of the processors new contracts.

His comments come following a week in which Brownes is rumoured to have signed new processors at a premium milk price to lure them away from other processors.

Brownes Dairy managing director Ben Purcell would not confirm or deny the claims his company is paying new signings up to 10 cents a litre more than its existing suppliers.

But Mr Purcell says his company is looking to put long term strategies in place to secure fairer milk prices for all suppliers.

He says Brownes has raised market dairy prices in an effort to revisit farm gate prices in future.

Source: ABC

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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