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Australia's small-scale farmers are 'meat in a market concentration sandwich'

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Australia's small-scale farmers are 'meat in a market concentration sandwich'

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Australia’s small-scale farmers are ‘meat in a market concentration sandwich’

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Many Australian farmers are getting squeezed at “both ends” by concentrated markets.

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Trends in the Australian Agricultural Workforce

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Trends in the Australian Agricultural Workforce

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Trends in the Australian Agricultural Workforce - DAFF

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What can data from the Census of Population and Housing tell us about changes in agricultural employment? Authors: Neil Barr and Robert Kancans

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Compare Agriculture wages to other industries

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Compare Agriculture wages to other industries

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This is the number of people employed in an industry for their main job.

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Agriculture, Forestry and Fishing is a small employing industry. Around 2.1% of workers have their main job in this industry. Businesses in this industry are mainly involved in activities like: * growing crops * raising animals * growing and harvesting timber * harvesting fish and other animals from farms or their natural habitats A large share of the workforce is employed in regional Australia. Median earnings are $1,372 per week, lower than all industries median earnings of $1,700.

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Pros and cons of GMOs: An evidence-based comparison of genetically modified foods

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Pros and cons of GMOs: An evidence-based comparison of genetically modified foods

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Pros and cons of GMOs: An evidence-based comparison of genetically modified foods

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GMO crops have had their DNA altered to be more resistant to pesticides and less expensive to produce, but some experts have raised health concerns.

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Are Genetically Modified Crops the Answer to World Hunger?

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Are Genetically Modified Crops the Answer to World Hunger?

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Are Genetically Modified Crops the Answer to World Hunger?

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Hunger is a major world crisis for which a solution has not yet been found. Since their advent, genetically modified crops have been hailed as the key to solving world hunger.

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Farming on the verge of a workforce crisis

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Farming on the verge of a workforce crisis

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Farming on the verge of a workforce crisis | Deloitte Australia | Consumer Business, Agribusiness

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Australia’s agricultural industry is facing a workforce crisis. Read our analysis.

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Dairy farmers reassess futures before signing milk contracts, as many exit the industry

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Dairy farmers reassess futures before signing milk contracts, as many exit the industry

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Twice a day for more than half a century, the Wilson family have milked cows in their dairy at Calico Creek near Gympie. But now, owner Martin Wilson has called it quits.

Martin Wilson is one of many Queensland dairy farmers leaving the industry

Processors have offered record prices for next year's milk contracts

EastAUSmilk says improved prices still won't cover farmers' increased costs

His jersey milkers have been sold and the bulls will be next, as he converts his farm to running more valuable beef cattle.

"It was a prime time to get out. It is getting harder and harder to try to find staff," he said.

"The prices that we're getting for our milk aren't reflecting the increases that we're getting as far as fertiliser, fuel, wages and costs.

"As far as going ahead, 10 years, 20 years or whatever it may be with Woolworths and Coles determining the price at the end at the shelf, I can't see any future."

The perilous state for Queensland dairy will become clearer in July, when farmers decide whether to sign up to new milk contracts.

Despite processors now offering record prices, dairying is in steep decline and there is some speculation about whether it will survive the next decade.

Since deregulation in 2000, the number of dairy farms in the state has shrunk from 1,500 to fewer than 280, and the exodus isn't over.

Of 573.8 million litres of fresh milk sold in Queensland last year, just 53 per cent of it (309.5 million litres), was produced in Queensland, the rest was trucked up from southern states where the cost of production was lower.

Livestock specialist John Cochrane recently sold five Queensland dairy herds in five weeks.

"I've got a continuous line to farmers and they keep ringing me about getting out of the industry," Mr Cochrane said.

"Even though the prices have increased a little, the costs are going through the roof.

"Labour is very difficult to get and the farming age is climbing up so they really need help.They need some labour and they can't get it.

"Cattle prices are good, land prices are good. I f there's no money, why would they want to continue."

Generational change

After five generations in dairying, Mr Cochrane's own family has finished milking cows.

His son recently left the industry.

As the owner of Kenilworth Dairies, Mr Cochrane senior now relies on other farmers to secure milk for processing in his factory.

"The social pressures are so hard these days and there's some good jobs around where they can get really good money," he said.

"Who wants to be out of bed at three o'clock Christmas morning milking cows for people that don't want to pay for your product?"

Representing dairy farmers in Queensland and northern New South Wales, who primarily supply the fresh milk market, eastAUSmilk co-chief executive Shaughn Morgan said input costs had doubled over the past year and he was worried about the future.

"It's deeply concerning, particularly when some of the processors are bringing milk up from Victoria," Mr Morgan said.

"We need to look at ways that we can stop dairy farmers from exiting, otherwise we'll be looking at importing milk [from New Zealand] in the future, which is not what we want."

Code of conduct

Australian Competition and Consumer Commission (ACCC) deputy chair Mick Keogh said the mandatory dairy code, which was introduced in January 2020, had improved pricing transparency for farmers.

By June 1, milk processors are required to publish the prices they will be offering farmers for new contracts in July, and the ACCC has moved from educating processors about the code to enforcing it.

"There's been a culture change in the industry, whereas in the past, processors on occasions didn't even release their prices before June 30," Mr Keogh said.

"Now farmers have got 30 days in a sense before the new milk season commences, to look at all the offers that are available and make their own decisions rather than be forced into having to jump on something because they didn't know what else was available."

Tough times

Dairy Cooperative Norco, whose processing plant and suppliers have been hard hit by flooding in northern New South Wales and South-East Queensland is offering a record price of 84.5 cents per litre for its northern suppliers and 82.3 cents for its southern suppliers.

Lactalis has flagged it will be increasing its farmgate milk price by nine cents per litre to 81 cents per litre in Queensland and northern New South Wales.

Martin Wilson said his decision to quit dairying was made easier by the fact his milkers didn't go to the meatworks.

Maleny Dairies owners Ross and Sally Hopper bought the herd to grow their business.

The couple is investing millions of dollars into upgrading their processing and bottling plant. They own one dairy farm, lease two others, and are currently supplied by another 10 local farmers.

"It's working, obviously it all comes down to customer support," Mr Hopper said.

"It comes down to the story of what we're promoting. We want to look after our farmers, we want to pay them the right price because obviously if we don't have our farmers we won't have a future of local milk."

Get the latest rural news

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Rising costs, labour shortages force dairy farmers to reassess their businesses. Will the industry survive?

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Twice a day for more than half a century, the Wilson family have milked cows in their dairy at Calico Creek near Gympie. But now, owner Martin Wilson has called it quits.

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Age of Australian farm workers compared to general workers

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Age of Australian farm workers compared to general workers

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From: https://www.researchgate.net/publication/278030128_New_Entrants_to_Australian_Agricultural_Industries_Where_are_the_young_farmers/figures?lo=1&utm_source=google&utm_medium=organic

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QLD Agriculture (Especially Part 3 - Key issues by industry)

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QLD Agriculture (Especially Part 3 - Key issues by industry)

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QLD Agriculture (Especially Part 3 - Key issues by industry)

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QLD Agriculture (Especially Part 3 - Key issues by industry)

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Markets are evolving

Dairy is having to adapt to changing consumer preferences and competition from milk alternatives.

Public expectations are changing and consumers are increasingly questioning food and the way it is produced.

While the removal of quotas and export subsidies overseas has generated additional value in global markets it has also brought on more market volatility.

Dairy imports have secured a greater presence in the Australian market on the back of a variable domestic supply pool.

Supply chain adjustments

Processors have invested heavily on the back of clear opportunities for the Australian dairy industry - however they require more milk throughput to improve their efficiencies.

Processor ownership structures have evolved from the farmer-owned cooperatives to private companies which has influenced their decision making.

Australia is a major global dairy exporter however our relevance on global markets is being questioned on the back of reduced milk volumes.

On farm complexity

The way we farm is becoming more complex in response to market, pricing and climate variability.

A broader range of skills and knowledge are now critically important as farms expand, employ significant labour and need to manage the business in a more volatile operating environment.

Farmer confidence has been challenged by drought and industry events.

Risk and volatility

Australia has a more variable climate than our major global competitors.

Risk management has become critical to manage the increased volatility in both input costs and milk prices.

Input costs (water, feed, labour and energy) have become more variable on the back of volatile seasonal and market conditions.

Regional diversity

The drivers of farm profitability vary significantly by region and require different solutions to ensuring success.

Farm consolidation is shifting our relationship with regional service providers and communities.

Environmental pressures in some regions require farmers to adapt quickly, including diversifying and intensifying their enterprises.

Attracting and developing people

There is a shortage of skilled labour at all levels in the dairy industry.

Keeping skills and knowledge in the industry and encouraging farm succession is an increasing and critical challenge.

The prospects for the industry are bright but the pathway toward a better future will require concerted and sustained collective industry action. Dairy Australia is ideally positioned to play a key role in lifting profitability for farmers, rebuilding confidence in the future and facilitating industry stakeholders pulling together as a united force to address key challenges.

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Dairy is having to adapt to changing consumer preferences and competition from milk alternatives. Public expectations are changing and consumers are increasingly questioning food and the way it is produced. While the removal of quotas and export subsidies overseas has generated additional value in global markets it has also brought on more market volatility.

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The Real Climate Impact of Organic Farming

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Can organic farming have an actual impact on climate outcomes? Read why there is continuing debate on how to measure it’s value and impact.

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The Real Climate Impact of Organic Farming

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Last updated 30/04/2021

Dairy farmers choose the breed of cow most suited to the environment where they live, style of farming and their own preference.

The most popular dairy breed in Australia is the Holstein/Friesian. These black and white cows which originate from the Netherlands via America are known for their high milk production, large size and docile temperament. These are also the most popular breed world-wide, so farmers have the biggest choice of sires (males) for their cows.

The second most popular breed in Australia are Jerseys. Originating from the English Channel Island Jersey, these cows are smaller in stature and caramel-coloured, producing a smaller volume of milk which is rich in butterfat and protein. These cows are popular, especially in grass grazing farms, because of their hardiness, size, fertility and again their high butterfat and protein in their milk.

There are many other dairy breeds available in Australia, such as Australian Reds, Guernsey, Brown Swiss, and many others which all have their own benefits. Many farmers also have cross-bred cows, which may be a mix of two or more breeds. Cross-bred cows are known for their hardiness, heat tolerance, fertility, and generally good production.

To find out more technical information on cow selection for dairy farms see https://datagene.com.au/

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Last updated 30/04/2021 The most popular dairy breed in Australia is the Holstein/Friesian. These black and white cows which originate from the Netherlands via America are known for their high milk production, large size and docile temperament. These are also the most popular breed world-wide, so farmers have the biggest choice of sires (males) for their cows.