Dairy Industry

The Hon. T.R. KENYON (Newland) (14:10): My question is to the Minister for Agriculture. Minister, what is the government's reaction to the federal dairy support package announced today?

The Hon. L.W.K. BIGNELL (Mawson—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Tourism, Minister for Recreation and Sport, Minister for Racing) (14:11): I thank the member for Newland for another question on this very important matter. I spoke with Barnaby Joyce this morning and welcomed the federal government's approach to assisting the dairy farmers. As I said to him, no government, whether it's state or federal, is the bad guy in this. We are all here to lend whatever support we can to the dairy industry, and the support shown by the federal government has been very well received by people right across the dairy industry in Australia and by the National Farmers' Federation as well.

I also spoke to Joel Fitzgibbon, the Labor agriculture spokesperson, who has some ideas of his own. I think, as the federal government works through this caretaker mode, there will be a lot of collaboration between both parties on behalf of the dairy farmers of Australia, including the 252 dairy farmers we have here in South Australia. I want to also thank David Basham. We were on the phone earlier this morning talking about the package and how he sees it playing out for South Australian dairy farmers.

We have been working closely with them during the past three weeks. Last week, as I mentioned yesterday, we rolled out the $60,000 triage package to make sure that we could get very, very quick mental health counselling to people who need it as well as financial counselling to people. That's a really important thing that we do in the initial days of this crisis for the dairy industry. It was terrific to see a couple of dairy farmers out the front on the front steps—they brought in a couple of cows as well—and the big media contingent that we had there covering it.

I want to thank the media and all those South Australians who were on social media as well for the way they have brought this issue to the city. It's very rare that we see country people being so well backed by their city cousins. I think it's terrific, the learning experience that a lot of city people are going through about the consumer decisions that they make and the effect that can have on a fellow South Australian and their family. To everyone who has been involved in this, I think it's great.

I think what we need to remember, though, is that this is an issue that's not going to go away. While the media might move on to another subject next week or the week after, the dairy farmers have not only had their income for the next six or seven weeks taken away but they have also had their income for the past 10 months reduced by between 15 and 20 per cent in many cases. This afternoon—

Members interjecting:

Ms CHAPMAN: Point of order, Mr Speaker: this is an important matter and, if you would ask the four senior members of the government opposite to be quiet—

The SPEAKER: The point of order is clear, and that is that the Treasurer has been conversing aloud during the minister's reply, in violation of standing order 142, and I call him to order. Minister.

The Hon. L.W.K. BIGNELL: This afternoon, I will be meeting with Murray Goulburn, who have put $1 million into the Victorian package. We will be asking them for some sort of contribution to help South Australian dairy farmers. What we know is that we have 252 dairy farmers in South Australia; about 60 of those supply Fonterra and Murray Goulburn. If we look at it on a state-by-state comparison, we have 252 dairy farmers. Victoria has 4,100 dairy farmers, and 40 per cent of their milk goes to the export market. Ten per cent of the milk in South Australia goes to the export market. If we look at Tasmania, 70 per cent of their milk is also destined for the export market.

One thing we have in South Australia is a lot of great, strong local processors and the support for them we have seen come from the public in the past couple of weeks has been terrific. We will stand by the dairy farmers of this state, as we do all the agriculture sectors. We know that $18.2 billion is the economic impact that agriculture has on our economy. It is a very important sector, and we will continue to work side by side with the dairy farmers and their industry group.