Dairy products is an incredibly popular food, and as a result, it’s become one of the most sought after commodities for companies to sell.
But a new report from the Australian Institute of Economic and Social Research (AISER) shows the country’s dairy farmers are suffering as demand continues to drop, and consumers are increasingly concerned about the health of their dairy.
Key points:The AISER report shows demand for dairy products has dropped from more than 2 million tonnes in 2011 to less than 200,000 tonnes in 2020A major cause of this decline is that Australians are increasingly opting to buy local or organic productsThe report also shows that dairy farmers have less income, are not as well paid and the health impacts of dairy are not widely recognisedThe report found dairy production in Australia is at its lowest level in 25 years, and it’s the largest export market for the industry.
“The decline in domestic milk prices is also affecting the dairy sector in other parts of the world,” AISERS Senior Economist, Paul McPherson said.
“In the last three years, we’ve seen a drop in milk exports from Australia, but not enough to offset the significant decline in global milk prices.”
Australia has seen its export markets collapse, and there’s no easy way to make up for the loss.
“It’s also one of Australia’s biggest export markets, with the nation exporting more than $3 billion worth of dairy products annually.
But for many dairy farmers, the biggest driver of demand for their products is the loss of income due to the dairy industry’s downturn.”
It’s not just our farmers that are struggling; the retail industry as a whole has been struggling too, with retailers having to cut back on products and services,” Dr McPhersons report states.”
With the dairy price drop we’ve been seeing, we have to make some hard choices.
“Dr McPhesons report also found that dairy products are not being sold in a way that consumers are happy with, and the main concern for consumers is the impact on the environment.”
A lot of the products we produce in Australia are used to make other products, so it’s really about the environment and it comes down to a really big question,” Dr Williams said.
Dr McWilliams says there’s still a lot of work to be done to tackle the impact of the dairy business on the nation’s environment.”[There’s] an ongoing discussion around how to ensure we can do better on that,” he said.”[It] is important to remember that it’s about making sure that Australia is doing the right thing in terms of food and energy consumption, that we are doing the job that is needed to sustainably feed our people and support the industry.”
Topics:dairy-production,food-and-beverage,health,environment,industry,health-policy,environmental-impact,environment-management,agriculture-and‑tobacco,federal—state-issues,australia,new-zealandFirst posted November 07, 2020 19:15:42Contact Leigh FifeMore stories from New Zealand