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Western Australian Dairy farmers increase milk production in response to new summer milk price scheme
January 7, 2015

The head of a West Australian dairy says farmers have begun to increase milk production in response to an ambitious pricing scheme that rewards excess summer milk supply.

Dairy and fruit juice processor Harvey Fresh released new supplier contracts for dairy farmers in June and promised a 30 cents per litre increase for excess milk supply during the traditionally quiet summer months from January to May.

The 30 cents per litre increase applies for summer excess production for 2015, while farmers will recieve 25 cents per litre for extra milk in 2016 and 20 cents per litre extra in 2017.

Harvey Fresh’s Italian-owned parent company, Parmalat, has also recently introduced a similar scheme in New South Wales.

Some WA dairy analysts were initially sceptical farmers could increase production within a few months.

But Harvey Fresh general manager Paul Lorimer says the company production growth strategy is working.

Milk production at Harvey Fresh has increased this year on 2013 figures during September, October, November and December.

Mr Lorimer said the increases are due to an improved season and the new contracts.

“I do believe there has been some proactive action by farmers in relation to preparation for the January to May growth incentive,” he said.

Mr Lorimer said the farmers who have managed to increase production leading up to summer have proved sceptics wrong.

“There was some criticism about the growth incentives,” he said.

“But we wanted to send a very clear message … that we were serious about growing milk production in WA.”

Mr Lorimer said the summer milk production incentives are part of an overall strategy to boost output for export.

“There are heaps of opportunities in the export market that could be snaffled up with increased production of milk.”

Source: ABC Rural


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