China and South-East Asia have emerged as potential saviours of the WA dairy industry as farmers latch on to lucrative deals linked to supplying the burgeoning markets.
The deals have resulted in a jump in payments to a select group of farmers under unprecedented long-term contracts that guarantee returns for the next five years.
Industry sources expect exports of UHT milk from WA to China and South-East Asia to increase by seven million litres in the next year.
http://au.news.yahoo.com/thewest/a/-/newshome/17685945/farmers-sign-china-milk-deal/
WAFarmers dairy section president Phil Depiazzi said any increase in overseas demand would put intense pressure on the $1-a-litre pricing policy of Coles and Woolworths, which farmers blame for crippling the industry.
WA has been in the grip of its biggest shortfall in milk production for decades with the three processors - Harvey Fresh, Brownes and Lion - battling for supply from the 160 farmers still standing.
Milk production fell by 24 million litres to 338 million litres in the 12 months to July and Lion has been forced to truck in millions of litres to supply Woolworths.
Lactanz Dairies, WA's biggest single milk producer, was put into receivership this month, prompting fears the industry was at risk unless farmers were paid more.
Looks like that's the end of cheap aussie milk at the supermarkets.
Thanks a lot, Coles and Woolworths
