“This industry is vital for the south west and it simply can’t afford to take any more hits from the Gillard Labor Government determined to roll out a Greens agenda carbon tax. The carbon tax will have severe impacts on the nation’s food producing capabilities, and therefore huge consequences for agricultural industries in Wannon.”
“A carbon tax is estimated to have a severe impact on our dairy farmers, with an estimated $5,000 to $7,000 added to their expenses per year,” said Member for Wannon, Dan Tehan today.
“According to Adrian Drury, Director of the Australian Dairy Industry Council (ADIC) “the cost to dairy farming families of this carbon tax is estimated to be $5,000 - $7,000 per year. Electricity is a major component of dairy farming operating costs and this tax will have a severe, direct impact on dairy farmers”.”
“He also went on to note that “Furthermore, the Government has failed to recognise that as a trade-exposed industry, dairy processors cannot pass on the costs of a carbon scheme to local consumers or world markets, therefore farmers will wear the full cost of this tax”.”
Local Woolsthorpe dairy farmer Noel Roache backs up this sentiment “The Prime Minister says that the only impact will be an extra one cent per litre at the supermarket. This proves how naïve she is because the cost of this tax will be passed directly back down the food chain to the farmers at the end. A reduction of 1 cent per litre for our milk adds up to a lot of money lost for dairy farmers who can’t sustain any more hits to their bottom line.”
According to Bev Parsons, a dairy farmer from Nirranda South, “Everything will go up, transport costs, power costs; everything that we use and rely on will cost more. The factories will be pinged hard too, so they will just pass their costs on to us and we’ll be getting less money for our milk at farm gate.”
“Dairy is one of the main industries in Wannon, responsible for much of the prosperity of the south west and a hit of this magnitude to an industry already facing significant challenges is completely irresponsible,” said Mr Tehan.
The dairy industry directly employs almost 6,000 people in Western Victoria. About 1,700 dairy farmers produce two billion litres of milk annually. This represents more than 30 percent of Victoria’s production and 22 percent of national milk output.
“This industry is vital for the south west and it simply can’t afford to take any more hits from the Gillard Labor Government determined to roll out a Greens agenda carbon tax. The carbon tax will have severe impacts on the nation’s food producing capabilities, and therefore huge consequences for agricultural industries in Wannon.”
-ENDS-
Media Contact: Rachelle Miller 03 5572 1100 or 0408 564 232
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