Bega bosses told farmers need good incentives to grow milk pool

Dairy processors have been told to stop moaning about Australia's high farmgate milk prices and shrinking production volumes and focus on ensuring farmers continue receiving the financial incentives they deserve to stay farming.

"The big costs involved in running a dairy farm are no different to running a dairy company - we need a fair return to stay in business," a frustrated farmer shareholder told Bega Group's annual general meeting this week.

While congratulating the national dairy and grocery business for rushing to adjust prices to as much as $9.55 a kilogram (milk solids) in the past two years as processors scrambled to secure enough volume, he was fearful recent price peaks may be short-lived.

Too often dairy farmers were simply paid "what's left" after shareholders and processing costs took their cut, he said.

Yet, even dividends to Bega's farmer suppliers, who represent a big portion of its shareholder base, "didn't cut the mustard".

He foresaw more farmers quitting dairying if processors were not more proactive and offered next generation producers a future with income and investment security.

Andrew Marshall, Queensland Country Life, 26 October 2023.

This article requires a subscription to read, for the full story, click here.