Farmers in Australia are missing out on income from a levy imposed on drinking milk as part of the federal government’s dairy industry deregulation, said an industry body today.

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The Australian Milk Producers Association (AMPA) claimed that an Australian Competition and Consumer Commission (ACCC) report into drinking milk prices in the wake of deregulation was misleading. As a result, farmers were being paid less for their milk and consumers were paying more if prices since the real onset of deregulation were compared.


He said drinking milk producers were not receiving the full 11 cents a litre retail levy imposed as part of the deregulation package. Instead they were receiving about 5.5 cents a litre, and that was subject to tax, meaning farmers net incomes would be further reduced.

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