A significant surge in milk prices has been forecasted for Australians, as escalating costs and current industrial unrest push the dairy industry to its limits.
This week saw a series of substantial protests, with milk tank drivers and a myriad of dairy workers halting operations across Victoria. The United Workers Union (UWU) has branded this as the “most extensive dairy strike in living memory.” Dairy workers have launched a strike against corporations such as Saputo, Fonterra, Lactalis and Peters ice cream, all of which, they claim, are reluctant to share their swelling profits. The workers are echoing demands for improved wages and superior working conditions.
John Williams, the president of the Australian Dairy Producers Federation (ADPF), revealed in an interview last Friday that milk prices are likely to surge should an accord fail to be achieved between the striking workers and milk processors. Williams noted that numerous companies and factories were being singled out by the unions during a peak production season.
A perfect storm seems to be brewing, driven by recent industrial unrest, a plunge in milk production on farms, mounting costs and foreign competition. Indeed, an influx of cheap imported goods has placed massive pressure on locally produced Australian products.
Members of the disgruntled UWU resorted to social media to vocalise their grievances, with more than 1400 participants in the strike action statewide. Several reports indicated that some dairy workers continue to depend on governmental assistance despite working full-time.
The Transport Workers Union (TWU) extended its support to the milk tank drivers striking against Saputo, stating that employers have failed to address essential job security concerns. The drawn-out negotiations have reached a stalemate, with Saputo dismissing their own ethical standards and tightening the grip on hardworking drivers amidst a cost-of-living crisis, according to Mike McNess, TWU Branch Secretary.
However, industrial action may escalate even further. Tim Kennedy, UWU’s national secretary, hinted at the possibility of 24-hour rolling stoppages if the conflict remains unresolved.
The mounting cost pressure and the struggle to offset it without transferring it to the consumers is a significant concern expressed by Williams. He acknowledged the efforts of dairy manufacturers who have shouldered a considerable part of the additional costs and the challenges they face to mitigate the monetary brunt.
Amid this turmoil, a grocery in Melbourne was forced by necessity to impose purchase limits on milk to manage its dwindling supply.
Concerns have been raised not only about the impact of the strike on the industry but the ripple effect it could have on milk’s availability in markets. An ADPF spokesperson stated that the strike occurs amidst a challenging time for dairy processors already grappling with low milk volumes—a 30-year low of 8 billion litres, incessantly mounting input costs, and a substantial inflation of 30% in cheap imports.
In contrast, there’s a landlord’s assurance that no disruption has occurred in milk supply, and the absence of dairy products in supermarkets due to the strike remains far from reality. It points towards the indomitable spirit and dedication of ADPF members in managing the dairy farmers’ output and ensuring the availability of dairy products for the public.
Ms Waller of ADPF rallied behind Australian dairy products encouraging domestic consumers to choose their local products over imported ones. She ensured that public need not worry about their beloved Australian dairy products’ availability amid the industrial action.
