It’s no secret Murray Goulburn was sticking it to farmers a year ago when they slashed prices, but it’s now been revealed that at the same time they were putting the squeeze on farmers they were handing out giant pay rises to their own staff.
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GRETA dairy farmer Justin Evans believes there are plenty of stones still unturned and welcomes news of an inquiry into the dairy industry.
In the 2014 and 2015 financial years Murray Goulburn collected $1.2 million, rising to $1.657 million in 2016 – a total of a 38 per cent pay rise.
Mr Joyce acknowledged cheap milk had hurt dairy farmers for many years but now the situation was more pronounced because there was a depression in export prices.
According to industry body Dairy Australia, an “already challenging season” became “significantly more hard during April and May, as late-season farmgate price cuts were announced”.
Mr Joyce said even consumers were not happy with the low prices.
Aug 24 Murray Goulburn, Australia’s largest dairy processor, said on Wednesday its annual net profit jumped more than 60 percent, but warned it will face significant headwinds next season from an oversupplied milk market.
In May it was announced the ACCC was investigating the companies over cuts to the farmgate milk price.
“The ACCC will now go to work to be able to order and request information as to exactly what happened with this fiasco”, Mr Joyce said.
“If we can get a good inquiry.it’s still about accountability”, Mr Evans said.
“You just don’t want to see this thing happening, it is just so devastating for the whole industry”.
During the election campaign the government announced a support package including low-interest loans.
“The consumers are turning off it, because they are saying all I’m doing in buying a form of exploitation”.
The revelation has angered many, especially Agriculture Minister Barnaby Joyce who said the 50 per cent pay increase “doesn’t pass the sniff test”.
The company also said it had sustained a net milk intake loss of about 240 million litres since the start of the dairy season on July 1, due to farmers retiring, people moving to other processors, a wet July in Victoria and an increase in cow culling.
He said the support package was the “best way to carry farmers through”.
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“I think this warrants a serious investigation – you’ve got a supply chain of farmers bearing the risk for decisions that are made up the chain and I think that’s what we need to put the emphasis on”, he said.
