If BGA's Dairy Farmers are losing money-which they are according to Bega's Chairman- to the tune of 5 cents per litre, then it beg(a's) the Question: who's making the dosh?
Consider this: on average it costs Bega farmers at least $5.60 per kg, or 42 cents a litre to produce milk. Yet, Bega's 2016-17 Farm Gate Price is $5 per kg of milk solids, or 37.4 cents per litre!
The Answer is quite simple: everybody between the dairy farmer and the ultimate consumers-both in Australia and in Export Markets.
So back to my proposition: BGA's Focus-and indeed 100% of Aussie Dairy Industry-should refocus their energies and money where the margins and profits are! And they are obviously not with the dairy farmers churning out loss-making milk. Nor do they reside with selling bulk low margin products. Nor with overseas Distribution Agreements.
For the going-out-the-door backwards dairy farmers (read 5 cents/litre), there has to be a better way!
And there is.
PS: all of above facts came from BGA Chairman, Barry Irvin, in today's newspapers.
Note: Much-if not all-of the above applies to 100% of Aussie C0-Ops and manufacturers.
BGA Price at posting:
$5.70 Sentiment: None Disclosure: Not Held
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