Tuesday, November 13, 2012

Carbon Tax: Only Having Chicken Little Effect On Dairy

A study by Melbourne University indicates the carbon tax is having little effect on dairy farmers...

...and chickens coming home to roost (See below)
While dairy farms are big users of electricity, the research suggest price hikes have little to do with the carbon tax. Dr Richard Eckard, the director of the Primary Industries Climate Challenges Centre at the University of Melbourne, told ABC Rural that other factors are to blame. "Dairy farms wouldn't have seen much of an effect in their business," he said. "There have been electricity price rises since January, but our research would suggest the actual carbon tax is itself has only had a two and half per cent increase in electricity prices attributable to the tax."

But 18 months ago... "Dairy industry says carbon tax will cut farm milk prices"

Research and development group Dairy Australia that fears the dairy industry will lose international competitiveness under a carbon tax.
Dairy Australia's Chris Phillips says community incomes will fall in dairy regions as farm gate prices drop, because of a 10 per cent rise in electricity costs for both farmers and processors.
"Dairy manufactures are big users of electricity and natural gases, and those prices will go up as well under a carbon tax," he said.

12 months ago: "Dairy farmer faces $40,000 carbon tax"

That is about $10,000 more than the Australian minimum wage.
A new Australian Bureau of Agricultural and Resource Economics and Sciences report says the dairy industry will be more affected than any other sector, with farm production values dragged down by 4.3per cent, or more than $4000, in 2012-2013, and 4.7per cent, or $4500, in 2014-15.
Aberdeen dairy farmer and Dairy NSW board member Scott Wheatley said the report probably underestimated the impact because Hunter farm production value could be much higher than the report’s estimate of $97,000, and the region usually relied on irrigation, which meant big power bills.
‘‘I think it will hit us [Upper Hunter] a lot harder depending on the size of the dairy and because we have a high level of irrigation,’’ he said.
He said a larger dairy of more than 1000 head could incur costs of between $40,000 and $50,000.
Mr Wheatley said an operation of about 200 head spent about $45,000 a year on electricity – 5per cent and 7per cent of their operating costs.
The report expects power costs to rise by about 10per cent.

One year ago: "Dairy farming families, exports attacked by carbon tax"

Monday, October 03, 2011
Canberra’s carbon tax will cripple the household budgets of dairy farming families, and give overseas competitors an unfair advantage over Victoria’s major exporter of foodstuffs.
Bridget McKenzie, the Nationals Senator for Victoria, said this after touring Murray Goulburn’s Global Distribution Centre at Port Melbourne with the Nationals’ leader, Warren Truss.

“The carbon tax will cost the average dairy farm between $5,000 and $7.000 each year,” Senator McKenzie said. 

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