Country Gal, yes I am aware of how much water is used to irrigate pasture and cereals. They use 40% of all water extractions. However given that a greater amount is produced dryland, and we export 60% or so,(we produce more than we need even from dryland) then I'd say he still won't starve if irrigation water finds it's way to more profitable uses.

I commend your thoughts on "hard decisions for the greater good", few look beyond themselves or for the long term: greater than one lifetime. Few get to plan their businesses generations ahead.

rojo already we are importing many foodstuffs from overseas.

I have no problem with importing dairy produce from New Zealand but wheat from the Ukraine, fresh green vegetables from China - yes I worry about the purity of food.

When you buy Arnotts biscuits check whether they were made in Australia or just packed here. When you buy Home brand biscuits you will find they are made overseas.

The most productive dairy industry in Australia is irrigated land in the Murray Darling Basin and as the large supermarket chains tie up the distribution chains they are forcing farmers to accept rock bottom prices ex-farm gate so its quite likely that more farmers will be forced off the land.

As petrol prices start to increase, transportation costs will rise and it will not be economic to transport food across the world and sell it to consumers at a low enough price.

And rojo I do not drink bottled water unless I can taste the blue green algae in the tap water.

Rojo, just what are your "more profitable uses" for water? Nuclear power downriver in SA?

Seriously, if you want good infrastructure planners used to dealing with tight budgets, and good resource planners, who think in terms of generations rather than 2 years, employ a bunch of farmers. Its seems there will be plenty needing a job within a few years anyway....

Country Gal, that was my original point entirely,"what will they(govt) be doing with the water" in response to us "kissing our food supplies goodbye". I was merely pointing out that even IF the water wasn't used for meat and wheat we still wouldn't starve. I don't know what is profitable in all areas, and what alternatives there are. Cotton is good up North, if they've got water and permanent plantings go well with the high security water provided by the Murray. So far.
Milk is an essential, so if water prices were to increase, then this will eventually be reflected in milk prices.
Reforms to water will most likely impact pasture irrigation for beef, as the returns /ML aren't as good as say Rice/cerals. I don't think this will be by govt intervention but rather ROI economics.

Anyway why would they build a nuclear power plant in SA? Theres not that big a population, and there are other rivers than the Murray.

billie, sorry I didn't mean you specifically drinking bottled water I should have said people.

Whether or not the Commonwealth has control of water will not change the fact that water will find it's way to the most profitable use. The risk you correctly identify is dairy farmers not getting a good enough margin now and electing to get out and sell their water to tax schemes or to govt. Supply could drop significantly forcing prices well beyond what could be considered a fair price today. But the supermarkets won't care, they only work on margins, it will be the consumer who is most affected. If you can afford it don't buy homebrand milk.

I share your thoughts on buying Australian produce, knowing we have the safest and cleanest food possible.