Dairy farmers say drought milk levy is a 'con job' invented to trick the public and claim the 10 cents added to the price won't filter down to them

KYLIE STEVENS
4 October 2018
DAILY MAIL AUSTRALIA
Woolworths and Coles drought milk levies labelled a ‘con job’ by dairy farmers
Queensland Dairyfarmers’ Organisation wants 10 cent per litre levy on all milk
Vice president claims the supermarkets giants are ‘not really on board’
Its petition lobbying the supermarkets giants has more than 106,000 signatures
Woolworths and Coles have come under fire from dairy farmers, who have described the supermarket giants’ drought milk levy as a ‘con job’.
Coles announced a 30-cent levy on its home-brand three-litre bottles of milk last month while Woolworths’ special drought relief range of two and three-litre bottles will be on shelves later this month.
But that’s not enough, according to struggling dairy farmers, who say they will only get an extra half-a-cent to 1 cent per litre from the supermarket’ levies, well short of the 10 cents per litre being called for.
The Queensland Dairyfarmers’ Organisation has called for a 10 cent per litre levy on the cost of all milk sold in supermarkets, which would make a big difference to dairy farmers doing it tough.
Vice president Matthew Trace accused the supermarket giants of being ‘not really on board’ and described their drought milk levies as ‘a little bit of a trick’.
‘What’s really happened is they’ve done a bit of a con job on the public and they’ve put the levy on a small volume … of milk, only on a couple of lines,’ Mr Trace told the ABC.
‘The farmers are absolutely devastated because they realise there’s been a con job on the public and, of course, the public support it and Coles and Woolies have just abused that trust, really, of their customers.
‘I know farmers that have had real estate agents out today because they just think this is our best chance to fix the mess in this industry, and they feel it’s gone now.’
Woolworths directed Daily Mail Australia to its original press release when asked for a response to Mr Trace’s comments.
‘We’re clear this won’t solve the wider structural issues facing the dairy industry, given Woolworths branded milk accounts for less than five percent of Australia’s total milk production,’ Woolworths director of fresh food Paul Harker stated on September 20.
‘Drought relief milk is about easing some of the immediate pressure brought on by drought, while government and industry work through the long-term reform agenda needed to ensure future generations of dairy farmers can prosper.’
Daily Mail Australia also contacted Coles for comment. The supermarket giant told the ABC that 100 per cent of the levy on its three-litre milk will go to dairy farmers.
The Queensland Dairyfarmers’ Organisation launched a change.org petition a month ago as part of its nationwide appeal, which collected more than 100,000 signatures before Coles and Woolworths announced drought levies on their own brands of milk.
‘While there is no doubt that all agricultural industries are hurting, the dairy industry faces a tougher challenge than most,’ the petition states.
‘To produce milk, dairy cows need to be in peak health and their food quality and quantity maintained. So the increasing scarcity and the price of freighting in fodder has hit the dairy industry hardest.’
The petition states dairy farmers across Australia, not just those in drought-affected NSW and Queensland need the 10c/litre drought levy as scarcity has led the price of grain and feed to record highs in all states.
‘Combined with lower than sustainable farm gate prices in both states, we are imploring consumers to get behind a petition to all supermarkets, in particular, Coles and Woolworths, to increase the price on all milk by 10 cents per litre and for processors to guarantee that the full amount will go directly back to the farmers,’ the petition states.