As the drought worsens across New South Wales and Queensland, some farmers say it’s the supermarket giants sending them broke, not a lack of rain.

Third-generation dairy farmer Peter Haertsche says he’s “angry and frustrated” at the handouts being given to farmers, which he says don’t fix the real problem.

Peter is based at Augathella in Queensland’s central west and says other farmers are being beaten into submission by the drought.

“It was heartbreaking to go through Charleville yesterday, that town is dying.

“A lot of the shops are boarded up. They’ve had no meaningful rain since 2011.”

For Peter though, it’s the price war being waged by Coles and Woolworths that is killing his business.

“Alan, don’t rile me up this early in the morning.

“Every group’s needs are different and our needs are for a better price in milk.

“I’ve got plenty of water. I water-proofed my farm 10 or 15 years ago.”

Peter’s business partner Jim Strong says the government must step in and regulate the industry.

“80 per cent of the milk is being bottled and consumed by the consumer.

“Why can’t that 80 per cent be a regulated price of $1.50 a litre, immediately?”

Click PLAY below for the full interview

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