Dairy farmers biggest losers: MHR

South West dairy farmers are set to lose $6.5 million over the first five years of the carbon tax, making them the biggest losers in the nationwide industry, according to Forrest MHR Nola Marino.

Mrs Marino said the average dairy farmer stood to lose about $8000 per year due to rising refrigeration and transport costs.

‘‘Our State’s 165 dairy farms, most of which are family run businesses in the South West, will pay double their counterparts in the eastern States,’’ Mrs Marino said.

‘‘These costs cannot be passed on to consumers like other industries affected by carbon pricing.’’

The carbon tax comes into effect on July 1 with a carbon price of $23 per tonne passed on to businesses. Mrs Marino, a dairy farmer of 30 years, said the carbon tax would hit the already strugging WA dairy industry hard.

‘‘Many of our farmers have already cut their operating costs to the bone to be as efficient as possible,’’ Mrs Marino said.

‘‘This tax is another blow to dairy farmers, their families and communities.’’

The Australian Bureau of Agricultural and Resources Economics and Sciences report into the possible effects of the carbon pricing scheme into the nation agriculture was released last December.

The report predicted an average cost of $4000 to Australian dairy farmers, but the final costs are actually much greater in the west due to WAhaving the least number of dairy farmers among the States, but being the highest producer of milk per farm.

There would be an approximate Statewide loss of $1.3 million in the first year alone.

The carbon tax could not come at a worse time for dairy farmers who are battling, with farm gate prices dropping from 48 cents per litre before deregulation in 1999 to 38 cents in 2012.

The number of dairy farmers in WA has dropped from 419 in 2000 to about 165 in 2012.