Australian dairy farmers call for milk price hike amid surging fuel, fertilizer costs

Australian dairy farmers are urging supermarkets to raise milk prices as they grapple with soaring fertilizer and fuel costs, warning that without a price increase, milk production could decline and supply could be threatened.

The advocacy group eastAUSmilk, representing dairy farmers in Queensland and New South Wales, stated that milk prices must rise to cover the significant increase in costs such as transport and fertilizer costs, sometimes more than doubling, which poses the greatest challenge to farmers.

Without such action, the group warns, production will slow and milk supplies may dwindle.

The group noted that many farmers have already decided to reduce their use of urea, a key fertilizer, which might lead to decreased pasture yield, limit the number of cows that can be milked, and ultimately reduce overall milk production.

This might result in a risk of milk shortages if farmers continue to scale back production, a trend already seen in the regions.

The group is now calling for a 30-cent-per-liter increase in the retail price of milk to help the industry withstand the impacts of global events, including conflict in the Middle East.

(Staff reporter and Australian Broadcasting Corporation)