The Milk Price Index will face a thorough examination with a review into how well it meets the needs of farmers and processors.
Minister for Agriculture David Littleproud said the review was part of the Federal Government’s $579 million Dairy Support Package.
“I’m not convinced the index is working as well as it can for farmers so I want to know if that’s the case and what can be done to make it better,” Minister Littleproud said.
“The Milk Price Index was designed to help farmers easily access information which can help them make decisions.
“The aim is to let farmers compare farm gate prices, to encourage competition among processors.
“The truth is we need farmers to enter their data into the index in order for it to work well. Obviously I can’t force them but if there’s something we can do to make that easier, we will.
“The index also shows export prices for cheese, butter, skim milk and whole milk powder.
“We’ll go over the index’s first six months to figure out how well it delivers price transparency and helps dairy farmers understand market signals and run their businesses.
“The review will also look at how well farmers understand the index and if it’s working for them.
“I encourage all dairy farmers and processors to take part in the review so we can find out what’s working for them and what we can do better.
“The review runs until April (2019) with a report due after Easter.”
Source: Australian Government