State and territory governments set minimum farm-gate prices that maintained farmer income.With deregulation, farmers, processors and supermarkets were set free to negotiate prices.In economic theory, free trade works fine when you have a large number of buyers and sellers, all with the same amount of information about what is happening in the market.
But in the milk industry, thousands of producers sell to a handful of milk processors, who then sell to even fewer retailers.The major supermarkets control almost 60 per cent of total milk sales.It is not often you hear fresh producers screaming at supermarkets, in what is a very similar arrangement.from the Department of Agriculture, Waters and the Environment, there is a "perceived market failure".
On top of that, lately US and European dairy farmers have had a hard time with drought, increasing international prices. The United Nations' Food and Agriculture Organisation's Dairy Price Index increased by more than 17 from 2020 to 2021, and is expected to rise another 15 per cent by the end of this year.
The projected 28 per cent rise in farm-gate milk prices in 2022-23 will bring the value of the Australian dairy production to a recordYou might not appreciate it, but to keep dairy farmers in business, a fair price must be paied for your fresh milk.
Do it looks like i wont be able to afford to live soon along with the rest of the lower class citizens so hey fat cats, who's gonna do all the shitty jobs when we are all gone
Milk is over $5 a gallon in San Diego California
Still robbing the farmers
This is getting a little petty...