Australia's dairy industry has lost more than $2.3 billion due to fires
According to the Insurance Council of Australia (ICA), since the beginning of November, there have been 5,850 claims for insurance compensation for losses in fires, and insurance losses are estimated at 375 million Australian dollars (260.3 million US dollars). Due to severe conditions in many areas, the full losses from the disaster are still unknown and will be announced within a few weeks, reports The DairyNews.
The fires have affected more than 6 million hectares (14.8 million acres) of land in two most populous states of the country - New South Wales and Victoria, killing 24 people, destroying thousands of buildings and leaving some communities without power.
Aspen Group (APZ.AX), the company, which owns tourist parks in beach towns such as Tomakin on the South coast of New South Wales, reported on Monday that because of the fires they refused to rent holiday homes - which will reduce the company's revenue by at least 370 thousand US dollars.
Tourists and residents were asked to leave the region.
Bega Cheese, which operates two facilities in southern New South Wales, said its employees and milk suppliers were affected by wildfires. The company's shares fell nearly 9% on Monday.
It is estimated that in Victoria, which accounts for a third of Australia's milk production, large numbers of livestock have been killed in fires, resulting in the loss of an industry in the amount of 3.3 billion of Australian dollars.
Losses are also stated by producers of berries and fruits.
The Guardian reports that East Gippsland in Victoria and the South coast of New South Wales were badly damaged during the fires over the New Year, adding to the problems of an industry already suffering from severe drought and low milk prices. Supermarkets say that so far, the fires have not affected the supply of milk to stores, but farmers warn that this will happen soon.
Difficulties with communication in the affected regions, loss of pastures and herds, lead to the fact that farmers cannot make the shipment. To support farms, dairy plants continue to pay for non-delivered milk. According to representatives of processing plants, it is more profitable than to let the farms go bankrupt.
Some farms have not milked their cows for 50-60 hours.
Bega Company said it was working to supply forage and diesel fuel to farms-suppliers.
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