WAFarmers Dairy Council Anticipate Impact Of Grain Price Rise
AUSTRALIA - The WAFarmers Dairy Council have written to processors highlighting the anticipated impact of grain price rise over the next year and the anticipated effect on milk production over summer.
23 October 2007
2 minute read
Despite higher milk prices, the record grain prices together with recent increases in the cost of fertiliser, fuel and labour threaten margins in the dairy sector once again.
Dairy Council President Peter Evans.
According to the 2005/06 RedSky analysis of 39 dairy farms in Western Australia, the average cost of concentrate was $277 per tonne after milling; over 7.96 cents per litre. Based on the RedSky analysis, if the cost of grain to dairy farmers rises to $420 per tonne, the cost of concentrate per litre rises to more than 12 cents per litre.
“Although WA dairy farmers have received prices increases greater than that indicated above, this only restores profitability to the farm sector and in no way compensates farmers for extraordinary grain prices they will have to pay in the 2007/08 season,” said Dairy Council President Peter Evans.
“Any lack of compensation for higher grain prices is sure to exacerbate coming milk shortages over summer months.
“Many farmers have been encouraged by higher milk prices; however the prospect of paying record prices for grain is re-establishing their negative mind-set due to the perceived financial gains being lost.
“Despite higher milk prices, the record grain prices together with recent increases in the cost of fertiliser, fuel and labour threaten margins in the dairy sector once again.
“The WAFarmers Dairy Council urge processors to consider this request in the interest of milk supply over the summer period and the medium term viability of the dairy sector” said Mr Evans.
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