Vegan Australia and the Animal Justice Party (AJP) have reportedly told federal politicians the best long-term solution to the dairy sector’s farm-gate pricing crisis is to phase-out the industry over a decade according to a North Queenslander report.
The two groups have submitted their views and suggestions into the Senate Economics References Committee’s current examination of the Australian dairy industry. In response, industry leaders have hit back saying the dairy sector employs “world-leading practices” while generating $4.7 billion in farm-gate value that enriches regional Australian communities.
The Senate inquiry was instigated in September in response to the dairy industry farm gate pricing crisis that ignited earlier this year and is scheduled to report its findings by February 24 next year.
Public hearings have already been held in Canberra on October 26 and in Melbourne on November 15 with a range of industry and government agencies giving evidence.
The inquiry’s terms of reference include examining the legality of retrospective elements of milk supply contracts and the behaviour of Murray Goulburn in relation to the late season claw-back of farm-gate returns to producers, revealed in April.
Vegan Australia’s rationale was that it said it was “very aware” agriculture was a fundamental part of society and it wanted to see the “continued prosperity” of farming and farmers but was recommended pursuing that goal could be achieved without the “use and exploitation of animals”. It envisions the long term solution to the dairy crisis is to phase out dairy.
According to the North Queenslander, they are hoping for the day that technology is able to offer what Vegan Australia terms as “superior alternatives” to dairy products.
Vegan Australia said Australian consumers may hold out some loyalty to the dairy industry, but others in countries like Australia’s largest export market China were, “unlikely to show the same loyalty”.
It said Chinese policy would also shift to domestic production using advanced technology as soon as it became more cost efficient than importing Australian milk.
Vegan Australia said government assistance should be given to current dairy farmers that wanted to transition to plant-based agriculture, as part of the 10-year phase-out.
The AJP’s submission accused the dairy industry of inflicting animal cruelty while causing harm to human health and the environment.
“The most responsible course of action for the government to take is to transition away from animal-based milk and dairy, to humane, healthy, and sustainable plant-based milks,” the AJP said.
“Instead of focussing on trying to rescue an unsustainable industry that is harmful to humans and animals, the government should be turning its attention to innovative transition solutions.
“Consumers are increasingly embracing plant-based milks and it is the position of the Animal Justice Party that the government should embrace this trend and promote plant-based milks as healthier, more humane and more sustainable industries.”
In response, the Australian Dairy Farmers said the industry’s quality and safety processes were “among the best in the world” and the nation’s dairy sector – comprising 6128 dairy farmers of which 98 per cent are family-owned businesses – made a “vital contribution to the national economy”.
“With a farm gate value alone of $4.7 billion, dairy enriches regional Australian communities,” it said.
“Dairy farmers have had a tough past season and it is pleasing to note that the outlook for dairy in the future is more positive with a rebalancing of supply and demand fundamentals globally taking place.
“While we are an industry that has been under intense pressure, we are also an industry that has the know-how and resilience to overcome adversity and thrive in the long term.”
In its submission to the Senate inquiry, the Australian Food and Grocery Council (AFGC) said the food and grocery manufacturing sector employed more than 322,900 Australians, paying around $16.1 billion a year in salaries and wages.
The AFGC said the sector’s contribution to the economic and social well-being of Australia “cannot be overstated” and the dairy export industry had “solid” long term prospects.
“In the long term, global demand for dairy products is expected to remain strong with some analysts predicting a 25 per cent increase in consumption by 2025,” the submission said.
“With continued consumption growth in the Asia region, including China, the medium to long term prospects for Australian dairy exports are solid.”