PM talks buoy dairy

MURRAY Goulburn’s head honchos met with the Prime Minister Malcolm Turnbull and his deputy Barnaby Joyce to discuss the current predicament facing dairy farmers recently.
MG was represented at the meeting by chairman Phil Tracy and directors and staff Ken Jones, Natalie Akers, Mike Ihlein, David Mallinson and Fiona Smith.
Mr Tracy said MG was grateful for the opportunity to meet with the most senior levels of government and discuss the challenges facing the sector.
“The meeting was very constructive and open. We were pleased the government has remained focused on doing everything it can to assist the dairy industry,” he said.
Hazel Park MG supplier and board hopeful Kelvin Jackson said any time get MG can get in front of government to talk about issues is always positive.
He said while it is probably too early to know what the outcome of the meeting might be, his understanding is more work may have been done as to what help, if any, the government intends to give MG.
“The issues are substantial, the current milk price is below the cost of production and money has to be paid back. MG is dealing with a whole range of issues that affect farmers,” he said.
“There is no shortage of issues.”
Mr Tracy said the PM wanted to understand the background to last season’s farmgate milk price reduction, the circumstances behind the introduction of the milk supply support package and the potential for a lift in the milk price this season.
“The PM and deputy PM expressed their view that MG should do everything within its power to reduce the financial burden of the milk supply support package recoupment – something both the board and management are committed to achieving,” he said.
Mr Jackson said it was “imperative” MG does all it can to reduce the burden of the package on farmers.
“What it needs to do is pull costs out of the business and put savings towards the package and reduce the burden on farmers,” he said.
“The company has to wear some of the pain, as well as the farmers, but it is all on the farmers at the moment and it is not their fault.”
Mr Jackson said MG needs to be a bit more proactive when dealing with issues facing farmers.
“It needs to help as many of its suppliers get through this difficult time as it can,” he said.
The Federal Government last week announced a new inquiry into the Australian dairy industry to improve transparency and fairness for farmers.
Gippsland South MLA Danny O’Brien welcomed the inquiry announced by Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce in Melbourne, saying it would get to the bottom of the current crisis affecting suppliers in Gippsland.
“This inquiry, led by the Australian Competition and Consumer Commission (ACCC), will closely examine all aspects of the industry to try and ensure the current situation is not repeated,” Mr O’Brien said.
Mr O’Brien said the inquiry was separate to a current ACCC investigation examining whether milk companies acted unfairly when they slashed prices earlier this year.
“The inquiry will look at contract provisions that have enabled this current ‘clawback’, that is hurting all of our local suppliers, to occur,” he said.
“It will also look at the issues around the impact of local and international milk prices on profitability and examine competition and bargaining matters.”
Mr O’Brien said the new investigation would get underway in November, and is expected to report back to government in the second half of 2017.
Further information including its terms of reference will be made available at www.accc.gov.au/agriculture shortly.

Good sign: Hazel Park dairy farmer Kelvin Jackson said getting an audience with the highest level of government recently was a positive step for the troubled dairy processor Murray Goulburn.

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Posted by Sarah Vella on Aug 30 2016. Filed under Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry