Dairy Farmers Exiting the Industry Across NSW Due to Low Milk Prices

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MAIN BODY
The present article is based on the fact that why dairy farmers exiting the industry across
the whole NSW because of low prices of milk. With the analysis of the article it was evaluated
that farmers in New South Wales are actively making plans for exiting the dairy industry. The
major reason pertaining to the fact that the farmers received a confirmation from processor that
this week they are facing another year wherein they are producing the milk below the cost of
production. Also, the article highlighted the fact that after the positive reports and Bega Cheese
talking are stating that there is a strong market at current time and this was stated by dairy farm
Michael Shipton.
In addition to this, it was also evaluated that there are some farmers which are producing
the milk and they are exiting the market because of the different circumstances which occurred
in June 2018 (Dairy farmers exiting the industry across NSW due to low milk prices, 2021). With
the analysis it was found that the farm gate milk price was below the expectations for many
different suppliers and due to this the suppliers were not happy with the rates. Along with this,
Bega Cheese also announced that the opening milk price was $6.70 per kilogram of the milk
solids or was 50 cents per litre for the NSW producers which was a 3 cent increase as compared
to the last year.
Further it was evaluated that a there was a dissatisfaction with the dairy processer as they
were not happy with the prices and they stated that it is “very disappointing”. Along with prices,
Mr Shipton also stated that they would also have to reduce the number of cows and the staff
within the upcoming months. As a result of this the cost of milk producing will also increase
which will not be liked by the farmers and the consumers as well. in addition to this, for 20 cents
a kilogram also increased as compared to the last year and this is not enough for the farmers
within the valley to cover up all the cost of producing the milk.
The major reason pertaining to this fact is that the input cost is increasing such as grain
prices, electricity, fuel and all the other expenses. This is pertaining to the fact that when the at
the current moment, the production of milk is being taking place with New South Wales cost and
the Victorian prices. But in against of this, with Bega Cheese it was seen that they are having a
lot of Victorian suppliers and they are focusing on them only and not giving any importance to
their own home suppliers (Rural, 2021). Along with this, Executive chairman of Bega Cheese
has also stated that they have identified several challenges which the farmers are facing but then