QCA determination will drive up dairy electricity costs

The Queensland Competition Authority (QCA) electricity price determination will drive the average Queensland dairy farm electricity costs up by around $4,000 per farm.

The Queensland Dairyfarmers’ Organisation (QDO) president Brian Tessmann has slammed the QCA price determination as ill-conceived and an unintentional effort to price dairy farmers out of their industry.

“The average Queensland dairy farm produces around 950,000L of milk a year, so this electricity increase of almost an extra 0.5c/L of milk in production costs, for no additional benefit.”

“This increase will unlikely be absorbed by retailers at the checkout as the supermarkets have not increased the milk price since the $1/L milk drop in 2011.”

“This is yet another costs farmers will have to absorb.”

“Consecutive double digit price increases over 10 years proves that the system is broken and it needs fixing urgently.”

“QDO is calling on all the government to step up to the challenge and overhaul the electricity pricing system that is threatening the viability of the Queensland dairy industry. Otherwise, it’s time to fund a dairy project designed assist our farmers reduce electricity use.”

“Dairy farmers are now considering leaving the grid entirely as it no longer makes economic sense to continue paying these exorbitant electricity prices.”