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Worst fears confirmed on dairy industry



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P R E S S R E L E A S E FROM B R U C E L L O Y D

WORST FEARS CONFIRMED ON fDAIRY INDUSTRY

"Mr. Kerin's new dairy plan, announced in Canberra today, confirms:the worst fears of the dairy industry for a dramatic 25 per cent reduction in production and with Victoria's dairyfarmers initially suffering the most," stated Bruce Lloyd the Member for Murray.

Mr. Lloyd said that Mr. Kerin will achieve this rationalisation with a phased fall in the domestic price of manufacturing milk down to 130% of world export prices with the exception of the next production year, beginning July 1st, when the

1.5 cents per litre levy could increase returns by 30 cents per kilogram.

"Mr. Kerin has indicated that if the rationalisation is not quick enough then the levy will be varied. He has previously stated that he wants the industry down to a production of 4.6 million litres per year from the present Gmillion litres, by 1990. He also said that State city milk regulation will

not be affected by the new plan".

However, added Mr. Lloyd, as Mr. Kerin will not retain the federal legislation to prevent an interstate city milk price war, as the margin between the protected and expensive Sydbey and Brisbane city markets will become greater as the manufacturing price falls and as Victorians will carry the major adjustment burden, then the possiblity of a price war

rests squarely with the Victorian Government and industry.

"The Minister has placed the onus for the preservation of the capital city milk market back on the States and has given one year's grace before the most cut-throat rational­ isation of any major industry in Australian history begins

in earnest", concluded Mr. Lloyd.

ENDS 22 MARCH 1985, c o n t a c t 062 727505