DAIRY INDUSTRY

Mr VENNING (Schubert) (15:49): South Australia's dairy industry is in crisis. Years of protracted drought, coupled with low prices and a lack of water availability, has seen many dairy farmers struggling to continue and/or survive. Currently, farmers are getting only 21¢ per litre for their milk. This is not meeting their costs of production, and most dairy farmers are operating at a loss. When we compare the price dairy farmers are getting at the farm (21¢ per litre) with what we pay for 600 mls of ice coffee—and I buy it at $2.50 to $3—it does not take much to realise that the prices farmers currently receive for their milk is not sustainable, and that someone is creaming their profit and they are being ripped off. That is why many dairy farmers have opted out of industry and many are considering leaving.

The number of dairy farmers in South Australia has reduced significantly in recent times, with hundreds of good dairy cows going to abattoirs—good cows killed. The 2009 survey undertaken by Dairy SA showed that, on average, respondents have sold or culled 19 per cent of their milking herd so far this year.

It is clear that milk prices being paid to the farmers have to improve or it will put our future milk industry supply in jeopardy; in fact, it will wipe them out. The dairy industry directly employs 1,175 people on farms in South Australia and a further 350 in the processing sector. The estimated value of farm milk production in the region in '07-08 was $245 million. If the dairy industry in South Australia were to collapse, the flow on negative effects for the state would be huge.

I fail to understand how the Rann Labor government, at this time when dairy farmers are continuing to struggle to survive, can make a decision to close the Flaxley research centre dairy next year. According to PIRSA, the dairy business is closing because it is not viable. What about all the dairy farmers who own farms who are not viable at current prices? What assistance is the Rann government providing to them? Nothing, except to close the current dairy research centre.

The genetics breeding program run by SARDI will also go, and the herd is due to be sold off in March next year. What a disgrace! Talk about rubbing it in the face of an industry that is down. This closure, to me, smells of budget cuts. What about South Australia's dairy industry? Is the Rann Labor government just going to let it die? Are we just going to walk away from our industry and rely on Victorian milk, or overseas milk? It seems that the answer to this is yes. They have decided to close Flaxley dairy because they say it is no longer viable.

What about all the South Australian dairy farmers who are continuing despite their farms no longer being viable? They continue hoping that things will change. Where will we get our milk from when we do not have any dairies any more? Overseas. What about that? Will our community accept that? What about food standards in many overseas milk-producing countries? I urge the Rann Labor government to assist our dairy farmers and rethink the decision to close the Flaxley research centre dairy. I thank Malcolm Fechner very much for keeping me informed.

I turn now to the headlines in the weekend's media. I was quite moved to read, in the Sunday Mail, about the devastation that is occurring in our Riverland. The headline states, 'Fruit bowl losing life'. More than a third of South Australia's River Murray food bowl is now vacant, with irrigators forced to cut back on plantings or walk off the land. As reported in the Sunday Mail, the reasons for this are many: protracted drought, the high Australian dollar, cheap imports, a wine glut and lack of opportunities. The number of citrus growers in the state has halved, with a large portion of these being from the Riverland. The Central Irrigation Trust has seen 15 per cent of the water entitlements it administers for irrigators transferred permanently, with this figure projected to rise to a staggering 30 per cent.

Wine Grape Growers Australia estimates that we have 20,000 hectares oversupply of vineyards, with the wine glut set to impact heavily on the Riverland, as they supply more than 50 per cent of South Australian wine grapes. There are 2,000 clients of the Rural Financial Counselling service, and 600 of these hail from the Riverland. Thousands of fruit trees are being left to die, and many hectares of vines have been pulled in recent months. What devastation and heartache. My heart goes out to those in this wonderful community

But, why haven't we heard of this before, especially in this place? In my long time in this place, I cannot not recall the current member ever raising these issues in here, never moving motions in support of her people, never pleading with the house for understanding for the plight of her electorate. To make it worse, she has kept this government in power. You would think her electorate would have the ear of the government. Well, according to the Sunday Mail two days ago, apparently not. I hope the fortunes of the people of the Riverland turn soon; it could start on 20 March next year.