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July, 2022
Impacts felt one year on
Gormandale farmer Sam Bye wades through floodwaters that have pooled over his paddocks from damage caused by the June 2021 storms. FULL STORY - PAGE 3
photograph michelle slater
THE PRICE IS RIGHT MILK prices are at record highs as companies edge towards the $10 per kilo milk solids mark as processors are vying for supply, but some farmers remain wary with rising input costs. Dairy giants such as Saputo, Fonterra and Bega have hoisted their opening farm gate prices above $9, with new records coming off the back of stiff competition for
milk and robust global markets. However, costs in fertiliser, fuel and grain have gone through the roof amid war in Ukraine and ongoing disruptions associated with COVID -19. Leongatha South dairy farmer Benjamin Vagg took over his parents’ farm in 2020 and milks 420 cows. The third generation dairy farmer said he has his eyes set on increasing his herd by another 50.
But the Saputo supplier said although milk prices were up, so was diesel and fertiliser, and he was already locking up spring pastures to save on fodder down the track. “I’m trying to take a longer term view by expanding my herd. Usually milk prices going up drives expansion, but I don’t think this will drive expansion,” he said. “Costs are going through the roof, urea is nearly three times
what it was and who knows what diesel or what the weather will do, if it comes in too wet in late winter it will be a tough slog.” United Dairy Farmers Victoria vice-president Mark Billing said it was a “nervous time” for processors as they were either attempting to retain or attract new milk supplies amid global market volatility. Mr Billing said Australian milk supplies were dropping about
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2 per cent each year with other added pressures such as labour shortages, or dairy farms being switched over to beef production. “It’s that time of year where farm businesses are stepping up to look what’s on offer and farmers are looking at which processors will give the best return, we have a lot of choice now,” Mr Billing said. Continued on page 7
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By MICHELLE SLATER