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SBS Australia
08-06-2025
- Business
- SBS Australia
Australian dairy is in 'a world of pain' — and you might feel it at the checkout
Dairy Australia says less than two-thirds of businesses expect to make an operating profit, and more than half anticipate that profits will be lower than the previous five-year average. Source: Getty / Dowell Australian dairy farmers have faced increasingly difficult conditions in recent years, and it could mean mounting prices for consumers. Consumer groups have warned prices for milk products are expected to rise in the near future due to product shortages. But dairy farmers say it might not be enough to save the struggling industry. Australian dairy is a $13 billion industry spanning farming, manufacturing and exports, with a farmgate value of $4 billion alone, according to the industry's peak body Dairy Australia. Many dairy farms are in Australia south and south-east. After a hot, dry summer, NSW has faced heavy rain and floods, while Victoria, Tasmania and South Australia have been experiencing drought. In May, brothers Kevin and Doug Schlenert had their dairy production facilities and 70 per cent of their herd destroyed in floods on the NSW mid-north coast. The brothers said they didn't know whether they would be able to recover. "I've got no dairy now to keep going. I don't know which way to turn at the current moment," Kevin said, speaking with SBS News in the aftermath of the floods. "I don't know if I can bounce back from this. I really don't know." According to Dairy Australia's 2025 mid-year Situation and Outlook report, wet weather in the north and dry conditions in the south, in addition to tightened farm margins, have weighed on milk production across several dairying regions The report found a decline in farmer confidence in the future, with only half of respondents in the National Dairy Farmer Survey expressing positive views about the industry's future, compared to two-thirds the previous year. Dairy Australia said less than two-thirds of businesses are expecting to make an operating profit, and more than half are anticipating profits will be lower than the previous five-year average. Ben Bennett, a dairy farmer in south-west Victoria and president of Australian Dairy Farmers, which represents dairy farmers across Australia, said he is extremely concerned about the future of the dairy industry. He said the combination of rising operating costs and weather challenges has put many farmers in an impossible situation. "We're in, quite frankly, a world of pain," he said. "And it's going to get a lot worse too as we enter winter." Bennett said Australian dairy production has decreased by 25 per cent over the past two decades, while dairy imports from overseas have increased. He believes Australian dairy production will continue to suffer without government assistance and environmental policies designed to support farmers. "It would be better for a lot of policies to adhere and listen to local people in that area to maximise environmental opportunity and betterment as opposed to ... people who are somewhat removed from that kind of on-the-ground position," he said. Dairy companies recently announced their farmgate milk prices for the new financial year — that is, the price paid to farmers per kilogram of milk solids in the raw milk, which is later processed into products. Prices range between $8.60 to $9.20 a kilo, up slightly on last year, but a number of industry groups said farmers were hoping for more. You may have noticed dairy products are becoming more expensive. Michael Harvey, senior analyst at Rabobank, which focuses on agribusiness, said there was inflation "across the dairy aisle" in 2023 and 2024. "What consumers would realise is they're paying a lot more for their dairy products from the supermarket than they were two years ago ... milk, butter, cheese, yoghurt, anything you can track," he said. "We are at the tail end of a significant price spike for dairy products at a retail level." At the peak of the cycle, Harvey said prices increased by 25 per cent for milk and cheese. Dairy Australia's report said despite an increase in milk prices, high operating costs will continue to limit profitability for farmers, especially if weather conditions don't improve. Harvey said while consumers might be hit with some price increases in the coming months, he does not expect them to be as steep as those recorded in recent years. "That was very unique — it was record-high commodity pricing, it was record-high farm debt pricing, and that's what underpinned the need for companies to pass through high costs to consumers. "It can be a little bit complex, but ultimately it's about the global price of milk that will ultimately set the direction of pricing for dairy products and farm gate milk price." In the aftermath of the NSW floods, Eric Danzi, CEO of EastAusmilk, an industry body representing dairy farmers on the Australian eastern seaboard, warned the destruction could have an impact on supermarket shelves. "There's certainly going to be a real shortage of milk and products — how that plays through to consumers I don't know," he told Sydney radio station 2GB recently. "Between the massive floods in NSW now, previous [ex-tropical] Cyclone Alfred, and the drought in Victoria and South Australia, you're going to have a massive reduction in milk production across Australia." Harvey said while the current conditions are devastating for farmers, he does not expect them to lead to significant price increases in the short term. "It's not what's going to drive the farmgate price higher or commodity prices higher, it's more global fundamentals that matter," he said. Available in other languages Share this with family and friends
SBS Australia
31-05-2025
- Climate
- SBS Australia
‘Dead cows in the house': How floods devastated Australian farmers
Dairy farmer Kevin Schlenert says he's continuing to find cattle who were washed away in floodwaters. Some are turning up alive, but many are still being discovered dead far downstream. Source: SBS News Content warning: The story contains distressing images of dead animals. Brothers Kevin and Doug Schlenert have been lifelong dairy farmers, carrying on in the footsteps of three generations of their family. Floods that devastated the NSW mid-north coast last week destroyed their diary production facilities and killed at least 70 per cent of their herd. "I've got no dairy now to keep going. I don't know which way to turn at the current moment,' Kevin said, speaking with SBS News at his home in Glenthorne on Sunday. "I don't know if I can bounce back from this. I really don't know.' Kevin said the water rose so fast he became trapped inside his home for 24 hours before he was picked up in a neighbour's boat. "It raised very quick. I went to the steps [of my house] within half an hour, then all of a sudden, in an hour and a half it was at the windowsill. "I sat in my bedroom on the mattress where I was found floating. "I had my dog and cat on the mattress with me. I had to vacate out the window.' He said one heifer floated into the house, while he sat on his floating mattress. "One got into my bedroom. She was alive and swimming, and she wanted to climb on the mattress," Kevin said. What he saw when he returned shattered him. "I found three [cattle] alive in my house and five dead ones inside the house. I have removed them and buried them," Kevin said. "It's heartbreaking to see them because you reared them as babies, and you get attached to them." He said he found more dead cattle downriver and heard of more washed up on beaches. Kevin's story is one shared by many dairy farmers in the area. His brother Doug, who shares the property and dairy with Kevin and also lost livestock, says the entire community is "drained". "There's a few dairy farmers here that haven't been hit bloody hard, they've been hit that hard it's not funny," Doug told SBS News on Wednesday. "One family, they've lost a hundred head of cattle — and they were big freaking cows. "The dairy industry up in the Manning is a big community. But [in] times like this we'll struggle." During a visit to the area on Tuesday, Prime Minister Anthony Albanese visited a dairy farm in West Taree. Doug says he would have liked to have seen the Albanese visit more impacted farmers. "He didn't come anywhere near me. He didn't show his face in Glenthorne." "I'd like to say to him, 'I found 32 dead cows, prime minister, are you gonna replace them?'" Kevin said cows are turning up alive, but it's difficult to get them back to the pastures. "We're not equipped to go onto the beaches and find them," he said. "We don't have horses, motorbikes to get them off the beaches, and there's still cattle running loose on the streets." Since Kevin's story was first shared this week, many have expressed sorrow and a desire to help. Kevin and Doug said they've felt touched by the messages of support, but stressed their plight was shared across the region, by dairy farmers, feed producers, oyster growers, beekeepers, shops, and residents. "If people want to help, they can help — we've just gotta get the dairy up and running. That's going to be a real big task," Doug said. But both he and Kevin said they're not sure if they'll be able to come back from this. "I think this has just pushed the boundaries too far." "I've been through the 2021 flood, and this year I think this is the fourth one I've been through, and I don't know if I can come out of this on the other side of it." "It's in our blood — my dad, his dad, and his dad. Three generations of dairy farmers," Doug said. He says they need a new vat and compressors to start up dairy production again, as their equipment was destroyed in the flood. For now, they're milking cows in a neighbour's dairy. Kevin says he's received the one-off $1,000 payment made available for flood victims. He says he's also eligible for a $130,000 two-year interest-free loan from the government. "Then I'd start paying it back over 12 years. That would be getting me close up to 70 years of age, I don't know if I still want to be dairying then," Kevin said. More than money, Kevin wants to see real and lasting change. He wants flood warning sirens installed across the Manning River catchment, which is one of the biggest in NSW. "Make sure the sirens are put on the river because you never know what Mother Nature is going to throw at us again," Kevin said. "If the river rises, they go off quicker than what the SES can get the text messages to us or any news crew get messages to us." "If the politicians don't get off their bums and put the flood warning sirens in place, it's not going to prevent another disaster like this." While in the region this week, Albanese acknowledged the particular challenge facing primary producers, including dairy farmers. "We know there are major challenges, but what we're about now is dealing with the immediate concerns of recovery and looking after people during this period," Albanese said. NSW Nationals leader Dugald Saunders said he'd like to see more meaningful support for farmers. "We haven't heard any indication of when a category C or D declaration might be made, which would unlock what we know is needed for primary producers and also for small businesses, which is grant funding," Saunders said. "Nobody can manage or wants another concession alone. That's currently what's on offer. Nobody can afford that. Nobody's had insurance. "If they've had a loan previously, they're worried about paying that off. They need a helping hand in the form of a grant. They do not need another loan." Emergency Services Minister Kristy McBain on Wednesday said the federal government was "hoping to enact category C ... shortly". A spokesperson for Dairy Australia said as well as financial support, the mental health of farmers is a growing concern, given the scale of the flood impacts. "Dairy Australia's regional teams are reaching out to flood-affected farmers with direct check-in calls to better understand the impact on their farms and well-being," the spokesperson said. "The locally led NSW Dairy Emergency Leadership Group is also providing practical support, prioritising immediate response needs such as assisting in allocating/sourcing fodder, generator support for those without power, milking machine techs, vet assistance, matching options for cow parking, mental health support, and communications to impacted farmers." Dairy Australia says some fundraisers have been set up for impacted farmers, but that the organisation does not endorse any specific charity or fundraising campaign. "We do note that the NSW SES is leading the flood response, and Rural Aid has stepped in to provide practical support to farmers recovering from natural disasters. Both of these organisations accept donations," the spokesperson said. Hundreds of fundraisers have been set up for residents and businesses impacted by the NSW floods. A spokesperson for GoFundMe says it has established a crisis team to oversee heightened fundraising activity. "We also launched a dedicated hub of verified fundraisers to help Australians discover fundraisers for those impacted by the floods." "It is not uncommon for those with no direct connection to launch a fundraiser, out of kindness and goodwill. In these cases, all donations are safely held until GoFundMe are able to ensure that funds can be transferred safely to the intended beneficiary. "If our specialists are unable to verify a connection, the fundraiser will be removed and donors refunded." Readers seeking crisis support can contact Lifeline on 13 11 14, the Suicide Call Back Service on 1300 659 467 and Kids Helpline on 1800 55 1800 (for young people aged up to 25). Readers seeking support with mental health can contact Beyond Blue on 1300 22 4636. More information is available at .
