Good news from down at the dairy

THE “green shoots” of a dairy industry recovery are growing but big change is needed if it is to succeed in a tough global market, Australian Dairy Plan head John Brumby says.

Lack of trust between farmers and processors, a jumble of industry associations and high costs were obstacles that needed to be addressed, he says.

The former Victorian premier has been asked by industry groups to map out a blueprint for the direction of the embattled sector. His appointment to lead the Australian Dairy Plan comes after the industry was plunged into crisis by the implosion of Murray Goulburn Cooperative.

More than 20 workshops have been held nationwide to get feedback from farmers.

“There have been a lot of farmers in real hardship, but at the same time we are detecting some green shoots,” Mr Brumby said. “With the current season’s [milk] prices there is a bit of confidence returning. If we get the plan right there are opportunities for growth.”

The optimism came as supermarket chains Woolworths and Aldi lifted their price for home-brand milk.

Milk is no longer a battlefront in the supermarket price wars and grocers are passing on higher industry costs to consumers rather than pressuring suppliers to swallow them.

The number of Australian dairy farms has declined from 20,000 in 1980 to fewer than 6000 today, while the nation’s share in the global dairy trade has fallen from 16 per cent in the 1990s to 6 per cent.