“Although there is 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 dairyfarmers, who in our estimate will be paying an additional minimum of $5000 per annum. This may cause some farmers to leave the industry.

“Although the industry welcomed the previous announcement to exclude agriculture from the CPRS, we are waiting to hear the details on how dairy farmers will participate in an on-farm emissions reduction program."

Mr Judd acknowledges that the Government and Opposition have incorporated some of its concerns but concludes the offer has not gone far enough on food processing.