Dairy taskforce formed in Tasmania

Primary Industries Minister Jeremy Rockliff announced the taskforce last week which will comprise of stakeholders from Dairy Tasmania, TFGA, Rural Alive and Well, Rural Business Tasmania, the Tasmanian Institute of Agriculture, AgriGrowth Tasmania, milk processors, banks and service providers.

The dairy industry has been in turmoil following the shock announcement by Fonterra that it would be reducing its farmgate milk price from an average of $5.60 per kilogram of milk solids (kgMS) to $5kgMS. This means that for the month of May and June farmers will receive only $1.91kgMS, or 15c per litre of milk. It costs an average of 30c per litre of milk to produce.

Primary Industries Minister Jeremy Rockliff met with farmers, the TFGA and Dairy Tasmania following initial meetings at Agfest last week.

“This coordinated response will ensure the industry and government can work together to understand the implications and respond immediately and in the months ahead,” he said. “I commend the industry for its proactive response in leading the development with a number of measures and activities to support dairy farmers."

These include additional social and financial supports such as the Farm Based Feed Budgeting Sessions and Taking Stock Farm Business Review, and regional meetings and discussion groups.

The Department of State Growth’s Skills Response Unit has also been dispatched to provide advice to those in need including affected employees and farm workers.

The dairy industry in Tasmania is worth $442 million.