A website that estimates farm gate milk prices and tracks the progress of the global dairy trade is being billed as the shining hope to “create a more united dairy industry” according to its creator, the Australian Dairy Products Federation.
Called the Milk Value Portal, the site is at its core an information-gathering tool for farmers.
Its most interesting feature is the Farmgate Milk Value Tool, which generates graphs, charts and price estimates for farmers based on their location, milk production, butter fat content and seasonality.
Australian Dairy Products Federation (ADPF) president Grant Crothers said the portal marked a turning point in farm gate milk pricing transparency.
“Farm gate milk price is more complex than we would like,” Mr Crothers said.
“Many industry participants aren’t aware of the different factors that make up the market for milk at farm gate, resulting in business-planning challenges.”
The ADPF is powering its Milk Value Portal through data given to it by dairy processors.
The participating processors include: Australian Consolidated Milk, Australian Dairy Farmers Corporation, Bega, Beston, Brownes, Bulla, Burra, Saputo, Fonterra, Kyvalley Dairy, Lactalis, Lion and Norco.
“There is no other jurisdiction that has anything like this comprehensive portal, and it has been developed and paid for by processors based on the seriousness they place on farm gate milk price transparency,” Mr Crothers said.
Former Northern Victoria farmer and current Gippsland dairyman Daryl Hoey was in favour of the portal.
“The dairy industry has become way more complex,” Mr Hoey said.
“The Milk Value Portal gives me more confidence on what is happening by showing how the Australian dollar and world markets influence the milk price.”
Federal Agriculture Minister David Littleproud welcomed the portal.
“It will be an important resource to help farmers better understand the many factors affecting farm gate milk prices and help contribute to their business decisions,” Mr Littleproud said.
“Such as when farmers are thinking about the next milk-supply agreement.”
The portal complements the Dairy Code, which mandates an increase in industry information to farmers and processor transparency.
Source: Dairy News Australia