DAIRY farmers could still be forced out of business because of higher processing costs under the Federal Government's amended emissions trading plan.
The warning has come from the Australian Dairy Industry Council, which says dairy processors will still be hit with higher emissions costs that will be passed back to farmers.
"Although there's some level of assistance for dairy food processors, it doesn't go nearly far enough," ADIC chairman Wes Judd said.
"On the information received, it appears there will be an additional cost impost on our trade-exposed dairy products because our processors have missed out on any free permit allocation.
"This will make our dairy industry less competitive in global markets by not only affecting our exports but also giving imported product a price advantage.
"What doesn't seem to be understood is that additional costs will also be passed on to dairy farmers, who in our estimate, will be paying an additional minimum of $5000 an annum.
"This may cause some farmers to leave the industry."
Under an amended CPRS agreed with the Coalition last week, the Government agreed to earmark $150 million over five years to help food processors find ways to cut their emissions.
But there was no concession on trade-exposed, emissions-intensive assistance, which means processors will not qualify for any free permits.
Mr Judd said the Government and Coalition deal had incorporated some of the industry's concerns "but the offer has not gone far enough on food processing".
He said the industry welcomed the decision to exclude agriculture from the CPRS "but we are waiting to hear the details on how dairy farmers will participate in an on-farm emissions reduction program".
