Australian dairy farmers need “special support” when it comes to carbon pricing

Posted by AFN Staff Writers on 21st October 2011

Fonterra Australia, a subsidiary of New Zealand-based multi-national dairy giant Fonterra, has launched a guide for dairy farmers on how to manage the electricity cost increases of carbon pricing.

John Doumani, Managing Director of Fonterra Australia New Zealand, today said that the unique electricity demands of dairy farmers need to be understood when it comes to carbon pricing and compensation. He said that Fonterra is advocating for greater assistance for farmers to help them in transition to low carbon technologies.

Mr Doumani said, “Electricity is a major input cost in dairy farming as energy intensive milk processing starts on the farm.  We expect the Australian Government’s carbon pricing will have a direct impact of about A$3,000 per dairy farm per year on average in terms of increased electricity costs.

“We have initiated a series of programs to reduce our carbon emissions across our manufacturing operations, and now we are turning our attention to how we can help our farmer suppliers. Farmers are telling us that they are wary of the “snake oil salesmen” knocking on their doors offering a whole range of dubious solutions.  They are concerned about unproven technologies and capital costs necessary to implement change,” he said.