Quote:
Originally Posted by 383hq
I think that's part of the end game here - after retrospectively reducing the price to be paid to farmers for produce over the last X months, they are offering "early dividend" and "bridging loans".
Effectively admitting they know the input costs of the farmer are higher then what they're now prepared to pay. Guess what happens to those that can't repay their bridging loans...
FWIW I stopped buying $1/1l milk 2 weeks ago. Buying the otway farmers milk now $3.60 for 2 litres where I can.
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I could write a book about the flight of our agriculture industry. You do understand that the dairy farmer is paid a agreed cents per kilogram of butter fat. In the main the rate is very much equal between the major suppliers. So whether you pay $1 or $3 per litre of milk currently it will make no difference to the dairy farmer.
The suppliers have no interest in the sale of milk - the money is to made in value added products - powder to Asia Pacific , finished products like cheese , yohurts , protein drinks , flavoured milk etc etc.
Even with a stable known rate paid to the farmer , its the input costs of feed , animal welfare , and most important water that causes in the main to cause our farmers to fail
With dry conditions , increasing input costs this in the main is causing our farmers to fail
As was said earlier , many farmers fail on settling that supplier loans only to have them refinanced for a further season. This practice continues (only in a effort to avoid closure) until such time that the farmer calls it a day and sells out to the corporate entity or neighbour or has no longer any equity or insufficient cash capacity to meet their financial committments.
Once upon a time it was deemed a good dairy farm would milk 200 odd cattle now it isnt worth getting up in the morning unless you are doing 400+ and have acquired water access rights
Agree , every effort should be made to save our agriculture infrastructure in Aust and we should be mindful of the overseas swell to acquire large parcels for exporting leaving either rubbish for domestic consumption or nothing