NO matter what happens comes July 1, dairy farmers in the Hastings can take some comfort in knowing they are so well supported locally.
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The new financial year will likely see dairy farmers take a pay cut, predicted to see them earn a paltry 35 cents per litre of milk, which costs them 45 cents per litre to produce.
Real Australia Dairy factory in Wauchope exclusively makes cheese and yoghurts that are sold into the retail and food service trade in Sydney, Brisbane and the Gold Coast.
The components used to make these products are butterfat and protein.
Better yet, they use the milk of local dairy farmers, paying them an incentive for the components and the microbial quality of the milk.
After the factory was purchased in September 2015 by Real Dairy Australia, they were bringing in 4 million litres of local milk per year. That figure is now closer to 12 million litres.
Mark Livermore is a dairy and cheese expert, involved in the industry his whole life.
He currently works with Real Dairy Australia and said that local dairy farmers are extremely important to the factory.
In the early 1970s there were over 300 dairy farms in the valley. We’re now down to less than 20 that are still producing similar amounts of milk.
- Mark Livermore
“In the early 1970s there were over 300 dairy farms in the valley. We’re now down to less than 20 that are still producing similar amounts of milk,” he said.
Mr Livermore said Australians still produce more milk than they drink, but for the cheeses and butters it is crucial.
While they will continue to support local dairy farmers as best they can, Mr Livermore said with dairy industry and dairy pricing based on both domestic and international markets, it makes things tough.
“I feel for the farmers, (but) everyone has to compete on the open market,” he said.
“It all flows through with what’s happening international. We export about 70 percent of our milk so there’s a large amount that’s influenced by overseas markets.”
He also said that the advantage of having a factory where the milk is produced means the cost of freight is much less.
Mr Livermore said he hopes the price cuts anticipated for July 1 will not be as bad as expected.