17-12-2013 11:05 AM | Australia

Milk is now cheaper than water. Dairy farmers deserve better

What is wrong with this picture? Domestic and international demand for dairy produce is booming, but the price of Australian milk has declined so far that it is now cheaper than water. The dairy industry has been deregulated, but our dairy farmers don’t benefit from rising prices. Instead of being protected through tariffs, farmers are now prevented by regulation from selling directly to consumers, and they can face substantial penalty payments if they change the milk factory they do business with.

On top of this, all dairy farmers have to pay a levy to run the national industry body, Dairy Australia. They can’t opt out of this as it is taken out of their milk cheques by the milk processors. Last year, the levy on farmers raised over $30m – amounting to about $7,000 for the average farmer.
Full Story : The Guardian