National Foods offers decreased prices to farmers while increasing prices for consumers

A letter from multi national milk processor National Foods to a New South Wales school cafeteria has shown while dairy farmers are being offered lower milk prices, the price for the company’s milk products has been increased.

Senator for Tasmania and Shadow Parliamentary Secretary for Agriculture, Fisheries & Forestry Richard Colbeck released the letter today at a Senate inquiry into milk prices (copy attached).
In the letter, National Foods outlined that they were forced to increase the prices of milk products “due to unprecedented increases in the farmgate milk price.”

At the same time, National Foods was preparing to drastically screw down the prices offered to Tasmanian dairy farmers.

Senator Colbeck said National Foods has been caught out.

“On one hand, they are putting up the price of dairy products to consumers due to farmgate prices, yet on the other hand, Tasmanian dairy farmers are being screwed by National Foods.

“In fact, I would doubt any farmer Australia has experienced an ‘unprecedented’ increase in their milk price and hasn’t for well over a year. Why then are milk products prices going up?

“At today’s hearing in Canberra, National Foods could not adequately explain why this completely hypocritical and unfair situation is occurring.

“The letter I released today demonstrates this multi-national food company has no concern for the sustainability and welfare of the Tasmanian dairy sector, but has great concern for enormous profits – which it plans to double this year.”

“National Foods gave a strong impression at the hearing today that they are far more comfortable in their flashy corporate offices in Melbourne rather than the milking sheds of Tasmania.

Senator Colbeck said he will continue to fight for Tasmanian dairy farmers to bring about better milk prices, prices that will allow them to farm well into the future.

“It is critical the pressure is kept on National Foods, and other milk processors, to save the future of our dairy farmers.”
SENATOR THE HON RICHARD COLBECK Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry