New Victorian laws governing the sale of unpasteurised milk are costing organic dairy farmers thousands of dollars.

The death of a three-year-old boy last year, as well as three additional cases of hemolytic uremic syndrome in children under 5-years-old prompted the State Government to bring in new laws this year.

Dairy farmers must add a gagging agent to their milk, to make it unpalatable, if they want to sell it as raw or bath milk for cosmetic purposes.

Simon Schulz, a third generation dairy farmer from the state’s south-west, said he was unable to add a gagging agent and still keep his organic certification.

He said his family now pasteurised all its milk.

Adam Jenkins, the recently installed president of the United Dairy Farmers of Victoria, the state’s peak dairy lobby group, said, “People have made comments about how old farmers drink their own milk out of the vat or we give it to our neighbours. At the end of the day, that’s not really the discussion.”

Mr Jenkins said he understood the need for farmers to supply niche markets to maintain their incomes.

He said the biggest issue facing the raw milk industry was ensuring a safe supply chain from the farm to customers’ houses.

“You can’t just say ‘yes, we’re going to have it’ and have no quality assurance process,” Mr Jenkins said.

“I agree the [government] has done the right thing – maybe gone too hard, too quick – but maybe we need to relook at it. If people are really that keen on that, then they can pursue their own advocacy towards that.”