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TAS Country : January 27th 2011
Supermarket milk price war sparks dairy fears BRUCE MOUNSTER AS supermarkets do battle over milk price, Tasmanian dairy far- mers are becoming increasingly worried. Coles dropped its house-brand milk prices by as much as one third in some states earlier this week and was immediately matched by Woolworths. The moves are expected to force processors such as National Foods and Betta Milk to drop their branded milk prices and dairy farmers are worried any losses will eventually filter through to them. Tasmanian Farmers and Graz- iers Association dairy director Roger Swain said farmers saw downward pressure on milk prices as a bad sign. ''It's not a good idea to be driving prices down,'' he said. TFGA Dairy Council chairman and Herrick dairy farmer Andrew Lester said farmers were uneasy but the impact would not be immediate. ''Farmers hope it won't spill over into contracts . . . paid to the farmers,'' he said. Mr Swain said Tasmanian far- mers were fortunate that more than 90 per cent of their milk was exported as cheese, milk powder and butter. He said export markets re- mained firm, despite the high dollar, and farmers were paid comparatively well this season. Interstate dairy farmers fear the milk price drop could hit them hard, slugging the industry as it struggles to cope with floods after years of drought. They say the timing is ''terrible''. The national peak body, Aust- ralian Dairy Farmers, said, despite a guarantee by Coles it would absorb the house-brand price cut, any prolonged reduction would eventually hit farmers. ''Coles tend to keep their mar- gins no matter what,'' spokesman Chris Griffin said. ''We fear that Coles' decision will come as a blow to many dairy farmers battling towards recovery.'' Coles denied the price cut would affect farmers' incomes. ''Coles is fully absorbing the price cut,'' its merchandise direc- tor John Durkan said. As the supermarket war ex- pands, from petrol vouchers to milk, a big loser could be Natio- nal Foods' Japanese parent com- pany Kirin. Having spent about $3.4 billion buying National Foods, which includes Pura Milk, Lactos Cheese and King Island Dairies, Kirin took a $485 million writedown last month on dairy acquisitions. 4 Tasmanian Country Friday, January 28, 2011 News Garlic ANZ Australia s best value agribusiness bank. As awarded by CANSTAR CANNEX 2009 and 2010. Financial Services Research Group CANSTAR CANNEX compared 15 major agribusiness bank s, credit unions and building societies to determine the bank that o ered the best value to agribusiness. Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ s colour blue is a trade mark o ANZ. After years of supporting Australian agribusiness, we ve learnt that no two farms are the same. Therefore, it s only by getting to know how your business works that we can understand what you need. So whether we visit your property, your o ce or talk over the phone, make an appointment with your local ANZ Agribusiness Manager today. Visit anz.com/agri or call 1800 462 474. e don t just know your banking. e take the time to understand your business. ATTENTION GROWERS & PRODUCERS DUE TO INCREASED DEMAND WE REQUIRE MORE LOCAL FRESH PRODUCE. Large or small quantities Call Trudy at ISLAND MARKETS between 10-2pm Wed to Sun 6273 7918 2061849-110108 STATEWIDE FOREST MANAGEMENT SERVICES Not sure where to get the best advice & nancial return from your privately grown planta on or na ve forest? Tas Land & Forest If you have a pine planta on, old shelter belt, eucalypt planta on or na ve forest. - We offer harvest management services either as "Overall Forest Management", or separately tailored services to your requirements. - We have strong market networks in both domes c & export to ensure you receive the best value for your forest products. Our team of forest professionals will work hard to maximise your nancial returns & ensure the property is le as required by you the landowner. For prac cal & professional advice backed with proven systems..... Please phone Kent Lyon on 0408 248 867 or Office 64231280 Kent.firstname.lastname@example.org 2080309-110114 h
January 13th 2011
February 3rd 2011