Money & Banking

Tue, 4 Sep, 2018Basmah Qazi

The everyday grocery item that you may soon be paying more for

The everyday grocery item that you may soon be paying more for

Supermarkets are facing growing pressure to introduce a drought levy on the price of milk due to fears that farmers could soon be forced out of the industry.

Kay Tommerup, from the Tommerup’s Dairy Farm in Queensland Scenic Rim Region, said farmers need to see “something positive coming through” and that it’s time for a change.

“Every cent we’ve got is going into buying feed because we just can’t grow enough right now,” she said.

“Consumers have the power to make a stand, make a choice.”

The suggested levy, which is backed by many shoppers is 10 cents per litre.

The Queensland Dairyfarmers Organisation (QDO) released a petition on Monday and it has already obtained over 3,000 signatures.

While to the average consumer, 10 cents may seem like a minuscule amount, Ms Tommerup said that for her family’s farm “it would mean a truckload of hay instantly”.

QDO’s Sarah Ferguson says the aim is to start the levy small and then slowly raise it to 20 cents.

But despite the outpouring amount of support, Coles and Woolworths have yet to agree.

The supermarket giants cited an ACCC report from May that did not guarantee any benefits to farmers if prices increase.

But processors Norco and Parmalat have given the green light and promised to pass on the profit to farmers in need.

“So, that’s a great win,” Ms Ferguson said.

Dairy farmer Shane Hickey went viral last month after he made an emotional plea to Australia’s supermarkets to give him and other farmers a fairer rate for his produce as he struggles to keep things afloat.

The father of three took to social media to say that his hourly earnings were $2.64 in the last month as Australia’s east suffers from one of the worst droughts of the last 100 years.

Do you agree that prices should increase to help our farmers? Let us know in the comments below.