The Australian Dairy Farmers Association (ADFA) is urging the Federal Government to review the government’s plan to implement a national carbon price.
“We have been saying for some time that the carbon price is not a panacea, but the best solution to tackling climate change is to reduce emissions and build the economy to be able to absorb the economic costs of climate change,” ADFA president and chief executive officer Peter Dutton said.
The plan, announced by the Treasurer last month, will see a carbon price of $60 per tonne on top of the $25-a-tonne carbon price already set in place.
“That’s a much more reasonable price and it’s not going to be a big increase in prices,” Mr Dutton told the ABC.
“It’s going to bring the cost down, but it’s also going to reduce demand for dairy products.”
The ADFA is concerned about the proposed price, saying it will increase the cost of dairy by about 30 per cent over the coming years.
“For a dairy farmer, that’s about $200 per ton, which is not going away in a year,” Mr Whelan said.
“If you’re a dairy business with 100 or 150 dairy cows and you’re thinking about how much you need to produce to meet that, it’s a really big hit on your bottom line.”
He said there was a strong possibility the carbon pricing would increase demand for products from other parts of the dairy industry.
“I think you’re going to see that increase, but I think it’s more likely that it’s going do a lot of the damage to the dairy business than it is to dairy producers,” Mr Shilton said.
A new carbon tax would be introduced in 2019, and Mr Whams said it would take effect in 2020.
“The price is going to go up and up, so it’s likely that in the medium term it will go up a bit,” he said.
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