Milk Price Cut Hits Farmers
AUSTRALIA - The United Dairyfarmers of Victoria (UDV), the dairy commodity of the Victorian Farmers Federation (VFF), is concerned by the announcement by the Murray Goulburn Co-Operative that there will be a reduction in the milk price.
22 December 2008
1 minute read
The company has said it will cut the amount paid to farmers by 13 per cent from February.
UDV President Doug Chant said that while it was good that Murray Goulburn had advised suppliers of the news early, many farmers would have already completed budgets on the basis of a step up in prices for next year.
"Victorian dairy farmers are seriously concerned by the announcement and the impact that it will have on the dairy industry.
"This reduction is a consequence of the deterioration of world dairy market prices, as a result of the global financial crisis and will be a shock to many farmers.
"The drop will have a serious impact on the operating budgets of many of Victoria’s dairy farming families," Mr Chant said.
The Fonterra company in New Zealand has been forced to drop its payments by 10 per cent and other milk processing companies are expected to follow.
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