Dairy Industry Warns of Looming Milk Shortages

Australia’s dairy sector is warning of potential milk shortages unless farmgate prices increase.

Advocacy group eastAUSmilk says rising input costs, particularly for fuel and fertiliser, are placing unsustainable pressure on producers.

Farmers are already scaling back production, with some forced to sell livestock to manage escalating expenses.

eastAUSmilk president Mr Bale says immediate price increases are needed to prevent a sharp decline in milk supply.

He is calling for an increase of around 15 cents per litre at the farmgate level, alongside a broader rise in retail prices.

The group says supermarket milk prices may need to lift by at least 30 cents per litre to reflect higher costs across the supply chain.

Mr Bale warns that without swift action, reduced production could lead to significant shortages in the months ahead.