QUEENSLAND Senator Susan McDonald says she will call a Royal Commission into ongoing low payments to dairy farmers, unless supermarkets and dairy processors better reward dairy farmers.
Backing a call by Agriculture Minister David Littleproud for supermarkets to work with milk processors to increase payments to dairy farmers, Senator McDonald said enough was enough.
Senator McDonald said even with the advent of the Dairy Code of Conduct introduced on January 1 and oversight by the Dairy Ombudsman, some dairy farmers were still having to fight processors for decent prices.
She also dismissed claims by supermarkets that increasing the price of dairy products would turn customers away.
"Supermarkets suggest that a price increase at this time would not be acceptable to consumers, but I say that in New Zealand consumers pay $1.66/litre, and multiple surveys have shown Australians are willing to pay more for milk if it will help struggling farmers," she said.
"I would add that if Australian prices had been allowed to increase with CPI from when $1/L milk was introduced, milk would cost about $1.76/L, not the $1.20/L or so that it is now."
Senator McDonald said the other misconception was that Queensland dairy farmers needed to be more efficient.
"But they have cut costs to the bone and many cant even afford to pay family members who work for them," she said.
"They are up before dawn every day trying to make a living and then they also have to fight tooth and nail just get a farmgate price from processors that barely covers their costs - if they're lucky."
Senator McDonald said supermarkets had no problem demanding transparency from horticultural growers around labour payments.
"Yet when it comes to dairy farmers, but they turn a blind eye to less-than-the-costs-of-
Senator McDonald has called on supermarkets and processors to commit to paying a fair price for milk.
"Dairy farmers have asked nicely, they've been reasonable but they've been ignored, so if prices aren't increased, I will have no choice but to call for a Royal Commission into the consolidation of supermarket and processor power in Australia," she said.
"The government shouldn't have to get involved but if it does, supermarkets and processors won't have anyone to blame but themselves. Enough is enough."
