Dairy farmers in South Australian state of South Australia are sharing their stories about living on less than $1 a day.
Key points:The South Australian government has introduced a $1.30 milk bath tariff for milk-producing dairy farmsThe tariff applies to dairy farms in South and West Australia as well as in New South Wales and TasmaniaThe tariffs apply to dairy farming operations in South South Australia and New South England for up to two yearsThe tariffs are being introduced to help reduce the amount of milk produced by the dairy industryThe South Australia government has announced the introduction of a $2.30 dairy bath tariff that will apply to all dairy farms from the moment they are licensed.
The tariff will apply for milk producers in South, West and Northern Australia and to dairy farmers in New England, Tasmania and South Australia.
The dairy industry has been hit hard by the introduction.
The South American milk industry has suffered from high prices and high milk prices.
It is estimated that as much as 40 per cent of milk used in the US is imported.
Farmers are concerned about the tariffs, and are concerned they will negatively impact their ability to sell their milk.
“We have already seen a decrease in our profitability, so we really don’t want to be in the position of having to pay that,” said Greg Goulburn.
The Dairy Farmers of South and South-West Australia said the tariff was an important step in helping reduce costs.
“We feel it is going to have a positive impact on the economy and will also help the dairy producers and dairy farmers,” Dairy Farmers’ Federation South and Central Queensland president, Tony Langer said.
But Mr Langer warned it was important to keep dairy farmers informed of changes.
He said the dairy sector was experiencing a difficult time.
“Farmers and dairy operators are facing a major challenge and that’s a reduction in milk prices and a reduction on their profitability,” he said.
“The South African government has just been very positive with their dairy program and they’ve been very supportive of the dairy farmers.
However, they’re also looking at how to increase the milk price and we are concerned that that may impact on South Australian dairy farmers.”
The South Aussie Government has said that the dairy milk price will drop to $2 a litre by January next year.
The dairy tariff will affect dairy farms that produce up to one million litres of milk a year.
The SA Dairy Farmers Federation says there is no evidence that a price increase will be beneficial to the South Australian industry.
Its president, Robert Sarn, said farmers were already struggling financially.
“[The dairy milk tariff] is going into effect on January 1 and we know that it’s going to impact our farmers a lot,” Mr Sarn said.”[We have] had to sell some dairy farms, but also some other dairy farms and also our dairy farms have been sold out and that has a lot of impact on our farmers.”
He said a price reduction would be good news for the industry but that it was still not a good news story.
‘We’ve been dealing with this for a long time’The SA DFO said that while the dairy tariff would not impact on dairy farms directly, it would affect dairy farmers indirectly.
“It will impact on all the dairy farms within SA, and therefore indirectly on all of those farms,” Mr Lager said.
Topics:government-and-politics,business-economics-and/our-ways-in-government,australiaFirst posted January 02, 2019 12:25:35More stories from South Australia