Federal Labor’s plan to introduce a floor price for the farm gate milk could spell disaster for the dairy industry, according to Member for South West Coast Roma Britnell.
Mrs Britnell said the plan for a floor price was reminiscent of the wool reserve price scheme, which made Australian Wool uncompetitive in the international market and has shrunk the industry by 66 per cent since the scheme collapsed in the 1990s.
She said the idea from Federal Labor was a thought bubble at best, designed simply to make it look like they care for farmers, but actually having no idea how the industry works.
“All it will do is make Australian dairy uncompetitive in the international market and further reduce the dairy industry, just like a floor price did to the wool industry,” Mrs Britnell said.
“Milk production in Australia has already dropped while international dairy industries, including New Zealand, have double their production. The New Zealand Government has a history of supporting their dairy farmers – without re-regulating the industry.
“We do not need another ACCC investigation – there have been a number completed over the past decade – none of which recommended a floor price.
“There are plenty of other ways Federal Labor could support dairy farmers and I’d be happy to share a few ideas with them.”