Speculation is mounting that Harvey Fresh, Brownes and Lion will again lower the prices they will pay for milk because many contracts are up for renewal this year.
Fifth-generation dairy farmers Peter Harris and Jacquie Hall say they are at the sharp edge of Australia’s milk war. The Dardanup couple milk about 450 cows year- round and say that even when managing their enterprises as efficiently as possible, making a dollar was a challenge.
“Farmers are continually juggling finances to cope with increasing costs of production, with no ability to pass on one cent of these increases,” Mr Harris said.
“We now have 21st century input costs with payment pricing still from the 20th century. I believe it shows the efficiencies and progressiveness of the dairy farmers who have chosen to remain in the industry.”
Ms Hall said margins were diminishing.
By: TheCattleSite News Desk
Source: The Dairy Site