LL:ART: DAIRY FARMERS FIGHT MILK MONOPOLY

[Communist Party of Australia]

Dairy Farmers fight milk monopoly

Dairy farmers across Australia vented their anger last week at
the deregulation of their industry on July 1. Over 600 farmers
and farm workers (and a dozen cows) in NSW, and over 1000 farmers
in QLD marched on their state parliaments at the imminent loss of
their livelihoods. Legislation to deregulate the industry is
currently before the NSW and QLD parliaments and is well advanced
in other states.

Deregulation is being forced by the unilateral decision of the
Victorian industry to deregulate on that date, but it is also
supported by other State governments and the Federal government.
Milk processing companies such as Dairy Farmers and the big
supermarkets are also in favour.

The price of a litre of milk is currently $1.50 out of which the
dairy farmer receives 54 cents in NSW. But after July 1 the major
milk processors (some overseas owned) will be able to dictate
their own prices and are planning to slash the price paid to
dairy farmers to as low as 27c a litre. This reduction will cut
over $85,000 off the average farm income while the margin of
profit for the processors and supermarkets will sharply increase.

Over 60 per cent of Australia's milk is produced cheaply in
Victoria, and the industry there intends to aggressively enter
the NSW and QLD markets, whether the market is deregulated or
not.

The loss of income to already struggling farmers will cause the
"total destruction" of the industry in NSW and QLD, according to
the Australian Milk Producers Association (APMA).

The APMA, which represents 1100 farmers in NSW, has put forward
an alternative plan to retain the milk quota system, but allow
interstate producers to provide a share of the NSW market.

The Association's director Ken Cork says this would save up to
15,000 rural jobs in Australia, where they are already suffering
from higher than average unemployment levels. However, this plan
does not have the backing of NSW Labor Agriculture Minister
Richard Amery. His Federal counterpart Warren Truss has dismissed
the plan as unconstitutional and has also ruled out a suggestion
that the Federal Government use its power to institute a national
floor price.

Dairy farmers in Australia have already seen the industry fall
into the hands of big business, with the number of farmers
dropping from 30,700 to just 13,150 over the last 25 years. Under
the new system, market farms would have to be milking 400-500
cows to remain viable, when the average farm herd is currently
only 118.

Hardship

Mr Amery acknowledges the financial hardships that are going to
be faced by NSW farmers, but will push the deregulation
legislation through parliament regardless. He states that this is
necessary to take advantage of $337 million being offered by the
Federal Government, and does not see how any further compensation
from the NSW Government would help.

The Federal government's bail-out is nothing more than a
sweetener to facilitate the "restructuring" of the industry. The
government's package is not aimed at helping small farms remain
in business, but rather as an incentive to quit the industry and
deliver their livelihood into the arms of Agribusiness
Corporations. It is a continuation of the farm policy pursued by
governments for decades -- "Get big or get out".

Those who are driving deregulation claim that benefits will flow
to consumers with cheaper drinking milk. No major price fall is
expected however, and the $85,000 cut from the income of each
dairy farmer will, instead, flow into the pockets of the
processing corporations and the major supermarket chains.



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