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A YEAR on and dairy farmers like Huntingdon’s Ian Lindsay are still struggling.
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In fact, Mr Lindsay confidently says if things continue on the same path there will not be a dairy industry in the Hastings Valley come 2019.
In May 2016, the Port News spoke to Mr Lindsay about price cuts that were so severe farmers were selling their milk for less than what it costs them to produce it.
As it stands, things have not improved with the average price a farmer gets per litre of milk dropping another six and a half cents.
“That has been the drop from June last year to June this year,” Mr Lindsay said.
“Couple that with a bad season, just on my small operation I’m down $38,000 from the start of the financial year to now.
“If things don’t improve in another 12 to 18 months, I’d say there won’t be a dairy industry in the Hastings Valley.”
It’s a big claim to make but it is a sign of tough times, Mr Lindsay said.
“I’ve spoken to a lot of farmers and they’ve done their sums and are saying they can’t keep going,” he said.
“When I’ve lost $38,000 this year, I didn’t have that to spend last year if that makes sense. That will affect my production for next year.
“The price went down and it’s been a tough season so my production has been down.”
A tough autumn last year was not offset by a promising early spring.
“The dry late spring and early summer was bad. I was down 10,000 litres (of milk) compared to the year before,” he said.
If things don’t improve in another 12 to 18 months, I’d say there won’t be a dairy industry in the Hastings Valley.
- Ian Lindsay
Mr Lindsay is paid on the kilo of fat and protein, and when converted to litres of milk he battles to average 53c per litre.
“I supply Murray-Goulburn and because a lot of their products go overseas those markets were flooded and couldn’t sell it,” he explained.
“Couple that with bad management by the company they ran out of money to pay us.
“There’s no where else to go. Companies are reluctant to take on any new farmers.
“Other places pay a better price but there’s possibly 100 farmers waiting for those companies to take them on.”
Mr Lindsay is hopeful of seeing a rise after the end of June but will not know where he is situated for another fortnight.
“It’s quite similar to the last time we spoke. A year on there’s been no improvement,” he said.
“We need to know now what we are going to get to make plans, but it just doesn’t work like that.
“I feel farmers have to have 60c per litre base price, but at the moment it’s 46 and a half cents.
“I’ve had to sell cows that I would have normally hung on to, but I had to do that to survive.”
He does not want any government aid, simply a fair milk price.
“I think they (the government) might understand the situation but the secret will be to go back regulation like we had before 2000,” he said.
“Our quota milk in 2000 was worth 54c a litre. Here we are 17 years later and our base price is 46 cents.
“Take diesel for example. That has possibly doubled in price. How is it possible? We have our hands tied.”