Dairy industry warns Aussies of milk price hike

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• By Avi Yemini

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The price of milk could increase by 30 cents a litre in coming weeks, diary industry experts are warning.

The predicted price hike is another blow for consumers already struggling with the rising cost of fuel, groceries, and electricity, as well as increased rent and mortgage rates.

Dairy and consumer foods analyst Michael Harvey said wet weather, rising production costs, and labour shortages were to blame for a 350m litre shortfall in milk production across Australia.

He said the price of milk was likely to increase around 30 cents per litre.

The cost of other dairy products such as butter, cheese and yoghurt would also be affected.

Bianca Woodford, who runs a dairy west of Brisbane, told ABC News she hoped shoppers would understand the predicament faced by dairy farmers.

“It's certainly just keeping with those price increases at our end to sustain our business,” she said.

A spokesman for EastAUSmilk, the peak body for dairy farmers in NSW and Queensland, argued the price of milk needed to rise so that farmers could “put food on the table for their kids”.

Co-chief executive officer Shaughn Morgan said even a small price rise might not be enough to help struggling farmers.

"There is a continuing decline in the number of dairy farming enterprises, with many of the dairy farmers and their families deciding that enough was enough," he said.