Australia’s dairy farmers are facing an unprecedented dual crisis and need urgent, meaningful support from governments.
Nearly half of the nation’s dairy farmers are grappling with drought conditions. For some, it’s the worst since records began.
Meanwhile, more than 100 dairy farmers in New South Wales are cleaning up after a 1-in-500 year flood.
The devastation left by these extreme weather events, combined with lacklustre new season milk prices and high input costs, creates a perfect storm of challenges that threaten farm viability and Australia’s food security.
Dairy farmers in South Australia and South West Victoria are battling the worst drought on record. It’s also hitting hard in northern Victoria, Gippsland and extending into NSW.
Traditionally high rainfall zones are now parched, leaving farmers struggling to feed and water their cattle.
The economic toll on farmers is staggering.
Those affected by drought face exorbitant costs to secure feed and water for their cattle. Hay prices have surged by up to 54% year-on-year.
Meanwhile, flood-affected farmers have lost cattle, fodder, fencing, infrastructure, electricity, communications, and access to their properties.
In both instances, there is an immediate need for support and it’s critical to ensure farms survive.
Milk production is declining as farmers are forced to de-stock and reduce herd sizes due to the lack of feed and water.
The backlog at abattoirs and saleyards means some farmers are waiting weeks to offload cattle, despite not being able to feed them at home.
The ramifications of decisions being made over the coming weeks and months will be felt for years to come, as herds take time to rebuild.
Meanwhile the emotional toll on farmers cannot be overstated.
The pressure to keep their cattle healthy amid these crises is immense, leading to increased stress and mental health challenges.
The shortage of feed, fodder, and hay has forced farmers to source supplies from as far away as Queensland, adding to their logistical and financial burdens.
No price respite in site
Despite these multiple disasters, milk prices remain low, largely due to supermarket pricing strategies.
Dairy processors have just revealed their modest prices for the new milk supply season.
To borrow the catch phrase the processors used last year, we continue to see domestic prices disconnected from international markets – and not in a good way – as this year Australian processors’ prices lag well behind international markets and competitors such as New Zealand.
We also recognise they’re hamstrung by our big supermarkets.
When a cyclone hits, the price of bananas rises within weeks. Yet when nearly half Australia’s dairy farmers are hit by drought or floods, milk sells for the same low price every day in the supermarket.
Time to show up
What really grinds farmers’ gears when they’re facing such immense pressures is the government’s narrative that such natural disasters are unpredictable, yet farmers should be “prepared” and “resilient”.
It’s nonsense. What they’re really being asked to do in this instance is prepare for both a 1-in 500 year flood and the worst drought in memory.
What is unpredictable is whether our governments will show up when the people who feed them are on their knees.
You can’t manage climate change with media spin and a loan scheme no one can access.
If you want self-reliance, give us policies that actually work in the paddock – not just in Parliament.
The dairy industry is calling for immediate and meaningful support from the government to help farmers navigate these extreme conditions.
There are several key actions that can be taken in both the short- and long-term to provide relief and build resilience.
In the short term, we’d like to see the activation of “Category D” disaster support under the National Emergency Management Agency’s arrangements.
This measure would pave the way for farmers to receive low interest loans or cash grants to help with the costs of bringing in water and feed.
Additionally, the government can boost the supply of feed available by underwriting the import of feed from overseas to boost supply and help farmers get through the spring.
We’re not asking them to buy the feed – just to provide some certainty to importers and give them the confidence needed to direct ships our way.
The industry sees palm kernel extract (PKE), as one good alternative feed source. It’s already shipped in great quantities to New Zealand.
In the longer term, we seek support to address the root causes of the challenges we face this season.
One urgent need is action on water infrastructure projects such as stock and domestic water pipeline for South-West Victoria.
This is a proposal we’ve been taking to government for almost a year now, and for which we have seen funding to renew work on the existing business case
However, what industry really need from both state and Federal Governments is a genuine public commitment to co-funding the project.
If government is genuine about national food security, preparedness and resilience, this is one infrastructure project that will give hope and confidence to farmers to keep investing in the largest dairy producing region in Australia.
By Ben Bennett, President, Australian Dairy Farmers
Column originally published in ACM Agri publications.