Australians are being warned to expect record high prices in the coming weeks and months for dairy products, including milk, as costs spiral for dairy farmers.

And if that doesn’t happen, expect shortages at supermarkets.

“It’s classic supply and demand, isn’t it,” Mark Billing, the acting president of United Dairy Farmers of Victoria, told 3AW Mornings.

He told Neil Mitchell the cost of fertiliser alone had soared 186 per cent in the past year.

“We can’t keep wearing these increased costs,” Mr Billing said.

“It’s coming from everywhere – it’s labour, it’s fuel, it’s grain, it’s fertiliser, it’s parts for machinery … all of those things are getting that much harder and more expensive.”

Press PLAY below to hear him explain the issues

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