July 16, 2010
Positive rainfall and opening milk prices have put Gippsland dairy farmers a long way in front of where they were 12 months ago, according to The Nationals Member for Gippsland Darren Chester.
Murray Goulburn recently announced that as part of its opening milk price it would pay suppliers $4.75 for milk solids or about 36 cents a litre. The price is a 30 per cent increase on the same time last year.
Mr Chester has welcomed the stronger prices for local suppliers after a 30-40 per cent cut in export prices and ongoing dry seasons left many contemplating their long-term viability last year.
The increase in opening prices also comes on the back of the latest Australian commodities report from the Australian Bureau of Agricultural and Resource Economics (ABARE). The report stated that over 2010-2011 world dairy prices, global demand and trade are all expected to increase.
Mr Chester said he was pleased for local dairy farmers who have already benefited from increased rainfall on the same time last year and now with improved milk prices, have a greater cause for optimism as they enter the next 12 months.
“While the recovery will take time, there are several positive signs at the moment. Last year, I spoke with many local dairy farmers who told me that the industry was at a crisis point,” Mr Chester said.
“They were concerned for their future viability due to the ongoing dry seasonal conditions and the extremely low opening milk price that was a result of a slump in the global demand.
“Thankfully we have started to see a positive turnaround in not only milk prices but also increased rainfall. Both of these factors have given Gippsland’s world-class dairy industry a boost and a good reason to be optimistic about the year ahead.”
Mr Chester said he would continue to support the need for government funding to support infrastructure upgrades in the Macalister Irrigation District.
“Improving the efficiency of the irrigation system is an investment in the future of one of Gippsland’s more important industries,” Mr Chester said.