Radel cautious of a proposed powdered milk plant
NORTH Burnett dairy farmer Robbie Radel said he was cautiously optimistic about the effects a new powdered milk plant, being built near Toowoomba, would have on the struggling industry.
"(There is) absolutely huge potential to drive farm gate prices up, however when the feasibility study is done, I fear the volume of milk required to operate an infant formula operation of that magnitude may not be available," Mr Radel said.
"It would be a great asset for the industry up here and throughout (New South Wales) as well who would have access to supplying milk there."
Mr Radel said he questioned the history of powdered milk plants in Queensland.
"Previous powdered milk plants in Queensland have not been successful due to lower volumes of milk in Queensland and the fact that we already have an almost 200,000,000 litre white milk shortage in the state doesn't auger well for this venture to be successful."
"I believe the industry would benefit more if this business group were to build a normal processing plant to ensure that Queensland will always have access to fresh locally produced white milk.
"Farmers still being screwed by big processors and despite the fact they've said they aren't going to drop the price in Queensland at contract end on 1/1/17, the current price isn't sustainable so people will continue to exit the industry.
Mr Radel said he still supported the venture.
"I fully support any venture that has potential to drive farm gate price up, but as I said, previous plants similar to this have proven that Queensland isn't necessarily the best location for it," he said.