Hanson calls for urgent new support for Qld, NSW dairy industries

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One Nation leader Pauline Hanson has called for new support measures for the dairy industry to prevent the ongoing exodus of farmers, particularly from disadvantaged Queensland and NSW.

“We need changes that help Queensland and New South Wales, otherwise farmers will keep walking away, a traditional way of life will die, production will dry up, and we’ll be left drinking imported milk or milk powder,” Senator Hanson said.

Since dairy deregulation in 2000, Queensland dairy farmer numbers have dropped from 1500 to 300. Nationally, numbers have fallen from 22,000 to 5000.

National milk production has decreased dramatically from 12-billion litres annually for a population of 19-million, down to 8-billion litres today for 25-million people.

Senator Hanson proposed several dairy industry rescue measures, to be trialled initially for 24 months:

  • The ACCC to determine the actual cost of production per litre for each of the eight dairy regions of Australia.
  • A regulated increase of 20c per litre above the cost of production in each dairy region, paid by processors to farmers.
  • A regulated increase in the retail price of milk from $1.20 per litre to no less than $1.50 per litre, which is still lower than prices in undeveloped nations ($1.70), most developed nations ($2.40) and New Zealand ($2.50) and also lower than retail prices for bottled water.
  • Product labelling to clarify the milk’s origin (i.e. Victoria), its processing and truck departure dates, and reasonable shelf life expectancy.
  • Dairy Australia statistics to be published monthly by Government instead of annually as is currently the case, to provide more timely data on the true status of the industry.
  • Annual reporting by processors to reassure that farmers are receiving the mandated milk price (which is similar to reporting required of Fonterra in New Zealand).
  • Guidelines for retailers to be included in the Dairy Code of Conduct. 

Senator Hanson twice introduced a private senator’s bill last year to ensure all farmers received a fair and viable farm gate price for their milk but it was twice voted down by all Liberal and Nationals senators.

She said the abandonment of Queensland and NSW farmers was led by Nationals Minister for Agriculture David Littleproud, a Queenslander with a career history not in farming but in the banking sector.

“Liberal and Nationals senators should have crossed the floor and supported my dairy bill, just like Labor and the Greens did, but every one of them chose instead to put themselves and their political positions ahead of farmers, their families and Australia,” Senator Hanson said.

“The Liberals and Nationals deregulated dairy in 2000, which is destroying an essential Australian food industry, and I’m disgusted with their ongoing negligence today.

“They’re also allowing foreign buyouts of Australian farms, with no guarantee the milk will stay in Australia and mostly being exported overseas.

“I’m totally against their attitude of ‘get big or get out’ because dairy farming is a way of life for many rural families and communities; it needs to be supported.”

Queensland struggles to produce enough milk to meet its needs, so it brings 30 large trucks daily from Victoria with milk at least three days old before it gets onto Queensland shelves.

Production costs vary in each of Australia’s eight dairying regions. Farmers in Queensland are currently paid around 60c per litre with production costs of approximately 55c to 65c per litre, compared to Victoria’s production cost of approximately 40c to 45c per litre. It costs 17c per litre to freight the milk to Queensland.

An over-reliance on Victorian dairy imports could be jeopardised if disease sweeps through the Victorian herds, and could force Queenslanders onto powdered milk should Victoria prioritise its overseas customers when lucrative export markets reopen.  

“I fought the Nationals to get the Code of Conduct and now my fight is to get a fair farm gate price,” Senator Hanson said.

Senator Hanson secured the current inquiry into the dairy industry and its profitability since deregulation in 2000 that is due to finalise a report by September 15.

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