National Foods

Mark
HELEN KEMPTON, Mercury
TASMANIA’S 70-odd National Foods milk suppliers want the Australian Senate to investigate milk prices.
They want to know whether the company’s new Japanese owners are engaging in price gouging.

Suppliers met in Deloraine yesterday frustrated about massive price cuts they say will lead to bankruptcy, large-scale rural unemployment and animal welfare issues.

TFGA Dairy Council chairman Alan Davenport said Fonterra suppliers were also doing it tough and some would lose money this year.

National Foods markets under the Pura brand and also packages milk for Coles and Woolworths under the supermarkets’ labels.

It holds about 25 per cent of the Tasmanian milk supply market.

Fonterra holds more than 60 per cent and the rest goes to Cadbury. Read more here

September 3, 2009

Senate hearing secured for Tas Dairy Farmers

Tasmanian dairy farmers will have their milk price concerns heard after lobbying by Tasmanian Liberal Senator Richard Colbeck secured a special hearing before the Senate Select Committee on Food Production.

“Tasmanian dairy farmers are quite rightly questioning the reason provided by National Foods for a significant price drop,” Senator Colbeck said.

“Dairy farmers are, once again, the only ones to take a price hit along the dairy supply chain.

“I agree with the Tasmanian dairy farmers that National Foods’ defence that the price drop is due to an over-supply of milk is highly questionable and it warrants scrutiny.

“Like my colleague Senator Abetz, I believe farmers deserve their opportunity to be heard on this matter – we have ensured this can happen.

“National Foods will also be welcome appear before the committee. We are very interested to know why Tasmanian farmers are being offered 20.8 cents while the same company is paying New South Wales farmers 48.32 cents.

“This is a critical situation for the dairy farmers who, even under best practice, operate at a break even point of 39 cents a litre.

“This situation also reinforces the need for the Rudd Labor Government to modify its flawed climate change legislation.

“Rudd Labor claims it wants to work with industries, but they go ahead a make decisions completely unaware of the broader implications.

“If Kevin Rudd’s emissions trading system places a price impost on the milk processors, you can guarantee this will be passed on – in full – to dairy farmers.

“Government and independent modelling shows the Rudd Labor Government’s plan to reduce carbon emissions would reduce incomes of dairy farmers by $8000-$10,000 a year.

“The Government needs to take off the blinkers and see the reality of its flawed CPRS Bill,” Senator Colbeck said.