Supermarket 'milk wars' continue to push farmers out

The Queensland Dairyfarmers Organisation (QDO) says the industry crisis is continuing because of the supermarket milk price war.

More than 200 farmers are expected to attend the QDO's conference in Gatton in Queensland's Lockyer Valley over the next two days.

QDO president Brian Tessmann says since the major supermarkets began selling discounted milk last year, farmers are receiving less for their product.

"It's in a crisis situation I think at the moment," he said.

"What we're doing is killing off milk in Queensland to such an extent well last year at the lowest point last year, Queensland was bringing in a million litres a week."

Mr Tessmann says 40 farmers have left the industry since the milk price war began 18 months ago and he is worried more will follow.

"Over the past 18 months we've lost 40," he said.

"If you talk to any of the auctioneers and agents anywhere around Queensland or northern New South Wales you'll find there's quite a few more farmers with herds booked in.

"I think the situation is only accelerating at this stage."

Source: ABC News, 25 September 2012