Ken O'Dowd (Flynn, National Party) Share this | Link to this | Hansard source

Today I would like to talk about Queensland dairy farmers as part of the Australian dairy industry. Dairy is one of Australia's leading rural industries. Farmgate value for the 2015-16 financial year was $220 million. There are 3,000-plus jobs in the Queensland dairy industry alone.

There are approximately 425 dairy farmers left in Queensland. These 425 dairy farmers produce 70 per cent of all milk consumed in the state of Queensland. In 2000 the industry saw deregulation occur, and in 2011 the industry was further impacted by the introduction of one-litre milk, courtesy of Woolworths, Coles and the milk processors. Before one-litre milk was introduced there were 620-plus farmers in Queensland, while today there are just 425. If you do your sums, this is just short of 200 dairy farmers who have left the industry.

The current farmgate prices are unsustainable, with 50c to 55c a litre on quota being insufficient. It guarantees farm failure, zero innovation, little investment and, of course, a very stressed rural community. Current prices will lead to milk production in Queensland halving in the next 10 years. We anticipate that over 50 per cent of current dairy farmers will shut their gates and get out of the operation. Action is needed to fix the industry. Failure to act will guarantee that in 10 years time most of Queensland's existing milk factories will be shut, putting many workers out of a job. Failure to act now will guarantee that in 10 years time over 80 per cent of the milk consumed in Queensland will be imported. This has never happened in the life of Queensland since the year dot.

This is not an economic debate but a real-life disaster for small-business operators who are caused personal and business harm as a consequence of milk-pricing policies that they cannot influence. Action must be taken to restore the real market. There are three current opportunities to resolve some of these problems in the dairy industry. Affects test amendments are essential. The Senate has a dairy inquiry, and let us hope that it brings some real results, and the ACCC has a dairy inquiry going on at the same time. Each of these have the potential to determine the future of the Queensland and Australian dairy industries. Thank you.

Andrew Hastie (Canning, Liberal Party) Share this | Link to this | Hansard source

In accordance with standing order 193, the time for members' constituency statements has concluded.