Public empathy strong for dairy farmers in crisis

New market research has uncovered strong support for embattled dairy farmers and awareness of the current milk pricing crisis.
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A survey conducted late last month by market research company IMI International asked about 260 randomly chosen Australians aged 18 or over for their opinions on the topical issue.
Of those surveyed, 78 per cent said they believed selling $1 per litre milk at Coles and Woolworths had played a role in the current dairy pricing crisis.
Also, 74pc said they were aware dairy farmers were facing a crisis after large milk manufacturers reduced the price they’re willing to pay their milk suppliers.
And, 87pc of respondents said they believed Australian dairy farmers were actually facing a crisis while 54pc felt the current outlook was “bleak” for those milk producers or the “worst ever”.
IMI partner Devon Rick said the research clearly showed “incredible awareness” of the issues facing the Australian dairy industry, but also a deep sympathy and willingness to rally around the nation’s farmers.
“Australians certainly hold big brands and supermarkets accountable for their role and feel that the protracted $1 milk wars are partially to blame,” he said.
“Moreover, the milk market could be poised for a reset as 66pc of Aussies claim they are prepared to pay more for their milk if it helps our local dairy farmers.”
Due to the awareness levels of those surveyed about the crisis, IMI said the reputations of Murry Goulburn, Fonterra, Coles and Woolworths had also taken a battering.
The survey said 41pc felt less favourable to Murray Goulburn due to the pricing issue; 35pc felt less favourable towards Fonterra; and 56pc felt less favourable towards Coles and Woolworths.
Also, 52pc said they felt negatively towards Fonterra and Murray Goulburn due to the milk processors lowering prices to farmers.
Last month, Federal Agriculture Minister Barnaby Joyce announced support measures for dairy farmers impacted by the crisis including $555 million in dedicated concessional loans for producers that supply milk to Fonterra and Murray Goulburn and $2m to establish a commodity milk price index to increase pricing transparency measures.

The government also allocated $900,000 for an additional nine Rural Financial Counsellors in Victoria, Tasmania, SA and NSW and another $900,000 for Dairy Australia’s ‘Tactics for Tight Times’ program.
Moves were also made to fast track Farm Household Allowance applications while the major banks also took positive steps to help farmers manage debt pressures and other forms of assistance.
Coles also moved fast to introduce a new branded product price with an additional 20 cents per litre to build a support fund for dairy farmers.
The Australian Securities & Investments Commission and the Australian Competition and Consumer Commission are also investigating underlying issues concerning Murray Goulburn’s move in late April to reduce estimated price returns to milk producers, which Fonterra followed.
The IMI survey report also questioned whether it was time for Coles and Woolworths to end the $1 milk war.
It also said supermarkets and manufacturers needed to work together to resolve the milk pricing issue and protect their brands.
“It’s in their best interest – he who recovers first, recovers strongest,” it said.
“The damage is done; it’s now an opportunity for Murray Goulburn to beat Fonterra, or visa versa.
“Recovery must be genuine, credible and swift.”
Source: FarmWeekly

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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