Milk price setting diverts dairy industry from own decline, says expert – ABC Rural



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A leading dairy figure warns the Australian industry that it is necessary to tackle the underlying issues that affect farm profitability, rather than focusing on the prices of milk.

Farmgate milk prices have been in the limelight since major processors have suddenly and retrospectively cut prices in 2016.

The man who ran some of the largest dairy companies in the world. Southern Hemisphere

"We must look more closely and realize that our profitability has eroded," said David Beca

M. Beca has been the managing director of Australia and the largest dairy companies in Uruguay. , Van Diemen's Land (VDL) and NZ Farming Systems Uruguay.

The pink picture that he had of Australian industry was "broken" when he sketched figures over the past 15 years of agricultural performance.

VDL CEO David Beca shows buyer Lu Xianfeng, center, and Sean Shwe ” clbad=”lazyload” data-expand=”0″/>

David Beca (L) was at the head of the largest dairy company in Australia, the Van Diemen's Land Company

David Beca, CEO of VDL, shows to buyer Lu Xianfeng, center, and Sean Shwe ” clbad=”lazyload” data-expand=”0″/>

David Beca (L) was head of the largest dairy company in Australia, Van Diemen Company's Land.

ABC News: Lauren Waldhuter

Australia produces less milk than it did 15 years ago, according to the Australian Bureau of Agricultural Economics and Resources (ABARES).

The ABARES data also show that productivity in dairy products has stabilized 2004, despite the improvement of other agricultural sectors. According to data from Dairy Australia, the cost of producing milk in Australia has grown faster than that of other comparable countries in the southern hemisphere.

According to Mr. Beca, these benefits show that Australia's competitive advantages for milk production have eroded.

"In order for a company or an industry to make progress, normally you want to see an improvement of 2 to 3% in output over time," said Mr. Beca

"In Australia, there was no growth

Less pasture and less profit

The Australian dairy industry is concentrated around pasture production areas in the southeast

cows graze fresh grbad as the main source of nutrition