Issues created in the dairy industry since deregulation at the turn of the century were hot on the agenda for local farmers this week.
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Hunter MP and Shadow Minister for Agriculture Joel Fitzgibbon spoke with a group of dairy farmers in Cobargo on Tuesday about the Labor Party's plans to help the struggling industry, which would include introducing a minimum farm gate milk price and a mandatory industry code of conduct.
"I genuinely agree the industry is in real trouble," Mr Fitzgibbon said.
Fourth generation Candelo dairy farmer Gavin Parbery said deregulation by the Howard government has put too much power into the hands of supermarket giants Coles and Woolworths.
"The last 16 years has been very tough because you're relying on a world market and we're one of the weakest markets.
"So at the end of the day I believe a more sustainable industry is needed and if that means regulating again then I'm for that," he said.
While Mr Parbery said a code of conduct is likely to be created in the near future, he said it must include farmers, processors and retailers.
"We've got to a stage now after deregulation where NSW and Queensland won't be able to supply their own states," he said.
He estimated the number of dairy farmers in the region has decreased by 40 per cent over the last decade, and said while it costs 70 cents to manufacture a litre of milk, farmers are only able to sell it to processors for as much as 55 cents.
Mr Fitzgibbon said some dairy advocates were opposed to a code due to pressure from processors.
Dairy farmer Todd Whyman said many younger farmers are inheriting a debt and receive no help in getting a "kick start".
"What the general public doesn't understand is that artificially deflating the market creates an atmosphere where everyone is gravitating towards cheap products, so we need to put the price up because nobody is buying it," he said.
"We certainly need more money put into the industry. We're driven down and the average farmer is not getting a wage.
"Most surviving farms got deregulation money, but these young guys get nothing," he said.
Mr Fitzgibbon discussed Labor's policy of creating incentives for carbon farming and improving soils, as well as anti-dumping measures and better use of new technology.
"We want farmers to make money from the carbon," he said.
Eden-Monaro MP Mike Kelly said the industry must work to increase its bargaining power and "boost" advocacy work.
We believe in a free market, but this isn't a free market we are dealing with," Dr Kelly said.
"It's not a level playing field."