When Saputo announced it would open with $5.75 a kilogram milk solids, he asked himself what was the point of dairy farming.

He’s among the 28 per cent of south-west farmers surveyed in the recent National Dairy Farmer Survey who said they were considering leaving the dairy industry.

The 28 per cent figure was the highest for dairy regions surveyed throughout Australia.

Mr Symons said poor returns from more than four years of ordinary milk prices, a late autumn break that left him with little on-farm feed and numerous pasture pest problems have left him feeling negative about the industry.

Mr Symons, who supplies the Union Dairy Company, said he had hoped Saputo would set a price above $6 that UDC would feel compelled to match but had been disappointed.

He said he remained in dairying because there were numerous dairy farms on the market but few buyers.

The survey found the proportion of farmers nationally making plans to leave the industry had doubled from 10 per cent in 2014 to 20 per cent in 2018.

In the south-west, 16 per cent of those surveyed said they were in a winding down phase compared to the 11 per cent nationally.

In contrast to the 'intention to exit', 71 per cent of farmers felt committed to the long term future of their farm.

Roberts One Real Estate principal Danny Roberts said there had no significant increase in the number of south-west dairy farms on the market. 

WestVic Dairy executive officer Lindsay Ferguson said there was a long-term decline in the number of dairy farmers through farm consolidation but that decline had not been matched by a corresponding decline in milk production.

Mr Ferguson said some of the reasons for the high number of dairy farmers wanting to leave were likely to be retirement with many dairy farmers of retirement age, as well as economic and climatic conditions. 

In other industry news, the peak dairy industry advocacy group Australian Dairy Farmers said an overhaul of Australia’s skilled immigration program was needed to attract skilled employees from overseas to address the industry’s labour shortage. 

ADF said the new Temporary Skills Shortage (TSS) visa introduced in March to replace 457 visas for short and medium-term employment was not the answer to the labour shortage.

ADF president Terry Richardson, of Deans Marsh near Colac, said dairy cattle farming had been classed as the only role eligible for TSS visas, and skilled positions such as business manager, production manager and senior farm hand had been overlooked.

This meant that TSS visa holders could only stay for up to two years, with the option of a two-year renewal, he said.

“Skilled migrants will only apply for these roles when they are guaranteed four, not two, years of employment and have a pathway to permanent residence,” Mr Richardson said.

United Dairyfarmers of Victoria Wannon branch president Bruce Knowles, of Tyrendarra, said dairy farmers were struggling not only to get skilled workers but semi-skilled workers.

“There’s a big gap in the supply of general farmhands and milkers,” he said.

Mr Knowles himself has employed overseas workers and has three Filipinos and one Nigerian working on his dairy farm.

He said the overseas workers had come in through the 457 visa system and had progressed through to gain Australian residency.

“They are very good workers,” Mr Knowles said.

He said he was seeking more overseas workers and using a migration agent because of the large amount of paperwork involved.

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