Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

On everyone's mind is the effect of the drought. I wrote to the retail giants, asking them to consider the way they price farming produce. I still haven't heard a thing, but I'm not leaving this issue alone. Twenty cents extra per litre of milk, per kilo of produce and per dozen eggs is not a lot to ask, yet it will provide a financial buffer for our farmers and future-proof them.

Let me first quote from John—not his real name:

My life revolves around working with dairy farmers and I am the coal face taking calls, texts, making calls and trying to find a way through this rough time.

With respect to all farmers, a single Dairy cow drinks more than 150 Litres of water a day and requires more than 30 kilos of feed so farmers can supply AUSTRALIANS with their daily MILK.

John understands that in the midst of a drought we need a united front so that all farmers get our support. Segregation by state will do nothing and no favours for anyone. The nation is dry.

We're asking for a 20c increase across the primary producers' range of goods, to make an effective and immediate difference. My farmers are begging the supermarkets to crash the $1-a-litre milk barrier. This would deliver instant cash. Consumer sentiment is high, and, based on the volume being sold, a small increase of just 10c would mean an injection of more than $75 million in the first year. This increase in price doesn't cost the supermarkets; it just gives the public an opportunity to show their support. It can happen as soon as tomorrow.

In southern New South Wales there are almost as many farmers as there are days in the year, employing almost 1,200 on the farms, more than 3,000 in processing and another 4,000 in related parts of the dairy industry. This region produces 51 per cent of New South Wales milk and adds $97 million in dairy products. My local farmers cannot feed their stock, and some must slaughter five per cent of their dairy herd a week until we get rain. If that doesn't happen, they—successful fifth-generation dairy farmers—will walk off their land.

Dairy is a multiplier industry in my local economy. We will lose jobs and we will lose local dollars. They haven't seen an increase in farm-gate prices in the last 14 years. Their only gains have come from productivity change and milking more cows. Their cost of doing business—wages, insurance, rates, fuel, transport, land and fertiliser—have gone up exponentially every year.

Where are you, CEOs of Coles and Woolies? In 2011 your remuneration was $15.6 million and $1.9 million respectively. Where are you now? You keep milk at a lousy dollar per litre. One of my dairy farmers, Peter, wants a machine to change milk back to water, and then he'd get around $3 per litre. That's a scary thought! Here is another alternative: maybe my farmers should talk to Bega milk—they're looking for suppliers. And then, in a demand-driven market, Coles and Woolies would have to pay their suppliers properly.