I wish I could still buy milk directly from the dairy farmer before its messed up with all the stuff that's done to it these days. My better half on the other hand likes hers buggered about to the extent that its a very thin watery consistency.

Until I was 18 or so, our milk was direct from the cow and I'm still alive (I think) many, many years later.

Such is the price of progress (or regress)!!!

hako wrote:

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Bottom line to my query is if I pay $1 as against $3 a litre for my milk, does the dairy farmer get more money if I buy $3 milk. Please note when I say dairy farmer I mean the actual farmer and not the co-op which is owed by overseas companies (Italy and China).
From what I understand if we buy branded milk the supermarket and the co-op make more money buy does that filter down to the bloke who milks the cows.

Good Luck.,

Good question hako, i want to know that answer too.

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BaupleNut wrote:

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It wasn't 1 dairy farm it's one company which owns 25 dairy farms,milking 18,000 cows.The Chinese government are buying dairy farms around the hunter valley at the moment. If you think this milk is going to stay in Australia, your kidding yourself. With a shortage of quality baby formula in China,I would say it's very likely to be shipped out or maybe processed first at a Chinese owned processing plant first, manned by 457 visa Chinese workers.

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 If the reason for the drop in milk prices is a over supply of milk world wide, why do the Chinese Government need to come to the Hunter Valley to buy dairy farms and send the milk to China? How are the Chinese responsible for Australian farmers being disadvantaged as seems to be the thrust of your argument.

And 457 Visas were introduced by John Howard in 1996 (called Temporary Work(Skilled)(SubClass 457)visa) so it is pointless to blame the Chinese for the visas if, indeed, they are using them. You can vote the Liberals out on 2 July and then agitate for the Labour Party to revoke the 457 visas.

Just another example of scaremongering about the Chinese.

There are 6 major firms in Australia controlling approximately 85% of dairy products.

Murray Goulburn - a farmers co-operative - Australian

Fonterra - NZ owned

Lion - Japanese owned

Parmalat - Italian

Warrnambool Cheese and Butter - majority Canadian owned by Saputo Inc.

Bega - owned by Fonterra

That was discovered after 5 minutes Google research. Isn't it nice to have the real facts rather than making up your own.

Anything else I can help with?

The Phantom

BaupleNut wrote:

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Not sure on the No. attached to these visa's, but maybe you remember this;

www.abc.net.au/4corners/stories/2015/05/04/4227055.htm

And then there was The Pacific Seasonal Workers recently who were ripped of instead of getting weekly wages they were issued a debt. So yeah some people don't look very close at all do you Bryan!

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Were these workers on 457 visas?

I rest my case.

Gday...

Thank you HunnyBunny.

THAT is the problem .... nothing to do with $1/litre milk. Although that isn't helping the industry in any way as Coles/Woolies squeezed the providers to low supply prices. 

Cheers - John

Gday...

Thanks for posting that Brickies ... a very clear, and surprisingly unemotional, explanation of the predicament of the dairy industry at the moment.

The social media driven hyperbole regarding $1/litre milk as the reason for the dairy industry's trauma is unfortunate and misleading.

Rejecting $1/litre milk and buying 'branded' milk only increases the profit to the supermarket and their supplier - with NO effect to the producer ... the farmer.

I am always reluctant to seek government intervention in any industry as it very often introduces further inefficiencies. However, I think there needs to be a 'government' investigation/audit on the Frontera's of the industry and perhaps a 'floor price' established TO THE FARMER.

Cheers - John

HunnyBunny wrote:

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From what I have read the problem is that a price cut earlier this year by Murray Goulburn & Frontera dropping the price from $5.60 per kilo of milk solids to $4.60 ( blamed on a slump in global prices) Has been made retrospective, leaving farmers owing money for product already sold. Because farmers have been paid $5.60 all financial year, Murray Goulburn and Fonterra are essentially claiming that the farmers were overpaid from July last year until the price cuts three weeks ago And now, the farmers suddenly owe Murray Goulburn and Fonterra massive debts.

The average debt reportedly owed to Murray Goulburn by a dairy farmer is $120,000.

It also meant suppliers cost of producing dairy products now exceed the wholesale price. It costs about 38¢ to produce a litre of milk. The new prices see farmers paid 37¢ a litre.

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That is quite normal practice for a Cooperative.

Ignorance by farmers on how coop shares work has now come back to bite them on the @rse.

Farmers are effectively shareholders in a coop and have been paid advanced dividends on their shares which has been based on their production.

Now that the coop income is down, just like any shareholder in any incorporated entity, you have a liability up to the value of your shares.

If the entity is to prevent a loss the shareholders must pay up.

If you owned Telstra shares and Telstra got into a financial pickle they could make their shareholders pay up too.

The difference is that the value of a milk coop is based on an annual estimate for the production of a particular quantity milk being sold at a particular rate.
One shouldn't gamble if one cannot afford to lose. If a farmer spends all their advanced dividends without putting some aside for the inherent risk of receiving pre-payment dividends there is no one to blame but the farmer.

This little squirrel for one, is not sucked in by the sob stories being spun by the rabbits, who failed to prepare for the winter.

Now the other side of the coin. Dairy Farmers received some huge payouts from the government about ten years ago when dairying was deregulated. Some went out of dairying whilst others used the money to double production, or buy more land. And when the farmer wants to buy merchandise for his farm or a new vehicle does he support the local business or does he shop around to get the cheapest price. Or when he goes off to the big smoke does he not stop at the Coles or Woolies store and stock up as his grocer at home is a bit dearer. It is a fact of life. EVERYONE wants to buy at the best price not the fairest to all price. Its called competition and the strongest survive. I had a retail outlet once where it was cheaper to buy my Coca Cola from the supermarket than it was direct from COCA COLA. And I sold it for a profit after the super market had closed for the day. I bet most GNs fill up at the cheapest fuel outlet and use the shopper docket. I do Cheers Daz