Farmers in Australia have joined forces to launch a class action against Fonterra and another dairy company, Murray-Goulburn, which have slashed the price they pay farmers for milk.
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“If the current private-label milk boycott continues, consumers look set to spend tens-of-millions more this year in the belief that purchasing branded milk will result in farmers receiving a bigger pay day”, Choice spokesman Tom Godfrey said in a statement on Wednesday.
“Currently, whether you purchase private label milk or branded milk such as Dairy Farmers or Pauls, the farmer receives the same price per litre from the processor”.
Before the meeting was closed, Prime Minister Malcolm Turnbull publicly told the company’s representatives that they would discuss “why it was that your suppliers, your dairy farmers, your co-op members were being paid prices that seemed to be at odds with global prices and are now in a position where they have substantial debts to repay”.
A spokesman for Murray Goulburn said its farmers were directly benefiting from the public response.
“The government’s interests are in supporting Murray Goulburn suppliers”.
The federal government has hinted it could go further on a dairy assistance package to help struggling farmers hit by the milk price crisis.
“With the average farmgate milk price typically around 36 per cent of the average fresh milk retail price, we calculate that if the additional money is passed on by milk processors that farmers should get an estimated $41 million payday”, Mr Godfrey said.
“As a co-operative farmers do have control. but they can’t just rely on the co-operative itself telling them the message, they do have to test that outside to make sure it is accurate”.
Earlier this year, Murray Goulburn made retrospective cuts to the prices it paid for milk and instantly saddled farmers with large debts.
Among measures proposed by independent senator Nick Xenophon to help fix the crisis in the industry, is reinstating the free school milk program for primary schools. He said the loan package was an election tactic that had cheated dairy farmers.
‘If there are further things we can do. we will certainly consider that as well, ‘ the agriculture minister told ABC TV on Tuesday.
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The story Consumer group questions whether extra funds from branded milk reaches farmers first appeared on The Land.
