Dairy

Milk supplies dry up as worsening drought hits dairy production

26 September 2018

Sue Neales, The Australian
26 September 2018

The long drought has hit dairy farmers so hard in the hip pocket that milk production has started to plummet, leading to fears by major dairy processors that there will not be enough milk produced this year to meet their fresh milk and export commitments.

Farmers in dry southern NSW and northern Victoria along the Murray, Goulburn and Murrumbidgee rivers have slashed milking herds by up to 50 per cent as they struggle to afford hay and ­irrigation water.

There is also deep distrust within the industry of last week’s move by Coles and Woolworths to add a 10c-a-litre “drought levy” to three-litre bottles of private label milk, which are now selling for $3.30 retail.

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