WA Parliament Question on Notice regarding the state of the WA dairy industry, milk quality, government support, and contingency planning. The government acknowledges hardship but doesn't foresee collapse, directing to existing resources for data.

AnsweredQoN 402Legislative Assembly
Asked
13 September 2005
Portfolio
Agriculture and Forestry

QuestionView source ↗

(b) is the Premier aware that milk produced in Western Australia is of a higher quality than imported milk; (c) is the Premier aware that there is a crisis in the Western Australian Dairy Industry; and (i) if so, what action/s does the Government intend to take to stabilise the industry and ensure that consumers have access to Western Australian premium ‘white’ milk at Western Australian prices; (d) has the Government estimated how long the process will take for the Western Australian Dairy Industry’s application to the Australian Competition and Consumer Commission to establish a milk negotiating agency; and (i) if not, why not; (e) has the Government estimated the time given that parties may appeal any initial decision of the Australian Competition and Consumer Commission; and (i) if not, why not; (f) what is the estimated cost of completing the Australian Consumer and Competition Commission application, allowing for any appeal process; (g) does the Government intend to financially assist the Western Australian Dairy Industry application to the Australian Competition and Consumer Commission as per its election commitment; and (i) if not, why not; (h) does the Government have a contingency plan should the Western Australian Dairy Industry collapse; and (i) if not, why not; (i) will the Western Australian Government provide an independent source of information regarding the amount of milk produced in Western Australia; and (i) if not, why not; and (j) has the Government determined how much milk is being produced in this State and the amount of powdered milk (substitute or other) being used in milk; and (i) if not, why not?
(c) is the Premier aware that there is a crisis in the Western Australian Dairy Industry; and (i) if so, what action/s does the Government intend to take to stabilise the industry and ensure that consumers have access to Western Australian premium ‘white’ milk at Western Australian prices; (d) has the Government estimated how long the process will take for the Western Australian Dairy Industry’s application to the Australian Competition and Consumer Commission to establish a milk negotiating agency; and (i) if not, why not; (e) has the Government estimated the time given that parties may appeal any initial decision of the Australian Competition and Consumer Commission; and (i) if not, why not; (f) what is the estimated cost of completing the Australian Consumer and Competition Commission application, allowing for any appeal process; (g) does the Government intend to financially assist the Western Australian Dairy Industry application to the Australian Competition and Consumer Commission as per its election commitment; and (i) if not, why not; (h) does the Government have a contingency plan should the Western Australian Dairy Industry collapse; and (i) if not, why not; (i) will the Western Australian Government provide an independent source of information regarding the amount of milk produced in Western Australia; and (i) if not, why not; and (j) has the Government determined how much milk is being produced in this State and the amount of powdered milk (substitute or other) being used in milk; and (i) if not, why not?
(g) does the Government intend to financially assist the Western Australian Dairy Industry application to the Australian Competition and Consumer Commission as per its election commitment; and (i) if not, why not; (h) does the Government have a contingency plan should the Western Australian Dairy Industry collapse; and (i) if not, why not; (i) will the Western Australian Government provide an independent source of information regarding the amount of milk produced in Western Australia; and (i) if not, why not; and (j) has the Government determined how much milk is being produced in this State and the amount of powdered milk (substitute or other) being used in milk; and (i) if not, why not?
(b) Western Australian milk generally has lower bacterial counts than milk produced elsewhere in Australia. There is no fresh milk imported into Western Australia, so it is impossible to make to make a direct quality comparison. (c)& (c) (i) The Government is aware of hardship within individual farm businesses. ABARE farm survey data indicate that 10 per cent of Western Australian dairy farms had a negative farm cash income in the 2004 financial year compared to 14 per cent of all Western Australian broadacre farms. This suggests that the financial challenges created by deregulation, while very real, are no greater than those experienced by other farmers. (d) & (d) (i) No, the timing of that decision is a matter for the Australian Competition and Consumer Commission. However I understand that a draft determination is likely to be issued in the next few weeks. (e) & (e) (i) I understand that all interested parties will be given the opportunity to comment on the draft determination, or to request a pre-determination conference, before any final determination is issued. If an applicant or an interested party is dissatisfied with the Australian Competition and Consumer Commission's final determination they can apply to the Australian Competition Tribunal to review it within 21 days of the date of the final determination. (f) That would depend upon the appellants and the nature of their appeal. (g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(c)& (c) (i) The Government is aware of hardship within individual farm businesses. ABARE farm survey data indicate that 10 per cent of Western Australian dairy farms had a negative farm cash income in the 2004 financial year compared to 14 per cent of all Western Australian broadacre farms. This suggests that the financial challenges created by deregulation, while very real, are no greater than those experienced by other farmers. (d) & (d) (i) No, the timing of that decision is a matter for the Australian Competition and Consumer Commission. However I understand that a draft determination is likely to be issued in the next few weeks. (e) & (e) (i) I understand that all interested parties will be given the opportunity to comment on the draft determination, or to request a pre-determination conference, before any final determination is issued. If an applicant or an interested party is dissatisfied with the Australian Competition and Consumer Commission's final determination they can apply to the Australian Competition Tribunal to review it within 21 days of the date of the final determination. (f) That would depend upon the appellants and the nature of their appeal. (g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(d) & (d) (i) No, the timing of that decision is a matter for the Australian Competition and Consumer Commission. However I understand that a draft determination is likely to be issued in the next few weeks. (e) & (e) (i) I understand that all interested parties will be given the opportunity to comment on the draft determination, or to request a pre-determination conference, before any final determination is issued. If an applicant or an interested party is dissatisfied with the Australian Competition and Consumer Commission's final determination they can apply to the Australian Competition Tribunal to review it within 21 days of the date of the final determination. (f) That would depend upon the appellants and the nature of their appeal. (g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(e) & (e) (i) I understand that all interested parties will be given the opportunity to comment on the draft determination, or to request a pre-determination conference, before any final determination is issued. If an applicant or an interested party is dissatisfied with the Australian Competition and Consumer Commission's final determination they can apply to the Australian Competition Tribunal to review it within 21 days of the date of the final determination. (f) That would depend upon the appellants and the nature of their appeal. (g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(f) That would depend upon the appellants and the nature of their appeal. (g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation. (h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004. (i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at www.dairyaustralia.com.au . (j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors. (j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.
(j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.

AnswerView source ↗

Answered
11 October 2005
Response time
28 days
(a) The State Government ceased to have a role in controlling the supply of milk to Western Australian consumers with the repeal of the Dairy Industry Act in July 2000. Western Australian milk production would have to be halved before fresh milk supplies were threatened and as such is a most unlikely scenario.
(b) Western Australian milk generally has lower bacterial counts than milk produced elsewhere in Australia. There is no fresh milk imported into Western Australia, so it is impossible to make to make a direct quality comparison.
(c)& (c) (i) The Government is aware of hardship within individual farm businesses. ABARE farm survey data indicate that 10 per cent of Western Australian dairy farms had a negative farm cash income in the 2004 financial year compared to 14 per cent of all Western Australian broadacre farms. This suggests that the financial challenges created by deregulation, while very real, are no greater than those experienced by other farmers.
(d) & (d) (i) No, the timing of that decision is a matter for the Australian Competition and Consumer Commission. However I understand that a draft determination is likely to be issued in the next few weeks.
(e) & (e) (i) I understand that all interested parties will be given the opportunity to comment on the draft determination, or to request a pre-determination conference, before any final determination is issued. If an applicant or an interested party is dissatisfied with the Australian Competition and Consumer Commission's final determination they can apply to the Australian Competition Tribunal to review it within 21 days of the date of the final determination.
(f) That would depend upon the appellants and the nature of their appeal.
(g) & (g) (i) The State Government has already provided funds to the Dairy Industry Working Group to assist with the preparation and lodgement of the application for authorisation.
(h) & (h) (i) No. The Government does not believe that the dairy industry is likely to collapse. The 2005 national Dairy Farmer Survey indicates that dairy farmers will continue to leave the industry (as will farmers across all sectors of Western Australian agriculture) but that milk supply is unlikely to fall substantially. Milk production reported to date for 2005 has been slightly higher than for the same period of 2004.
(i) & (i) (i) I refer any members interested in milk production statistics to the Dairy Australia website. It can be found at
www.dairyaustralia.com.au
.
(j) Western Australian dairy farmers produced 396 million litres of milk last financial year. That was 1.8 per cent less than the previous financial year. The State Government does not collect statistics on the use of skim milk powder by dairy processors.
(j)(i) It is common practice to use skim milk powder to increase the protein content of Hi-Lo milk and flavoured milks. The Government has not been presented with any evidence that milk processors use skim milk powder in a way that contravenes either food safety or labelling requirements.

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