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Dairy Farmers Fear Pay Dispute Could Cost Them A$3M

19 January 2017

AUSTRALIA - A group of Queensland and New South Wales dairy farmers fear they could lose up to $3 million if a major milk processor drops the price it pays to farmers.

Gympie farmer John Cochrane is representing 193 dairy farmers currently in arbitration with their processor, Parmalat.

Parmalat, which produces the brand Pauls, was not able to reach a pay agreement with its suppliers from the collective bargaining group Premium before the 2016 contract ended on 31 December.

"If they get the full drop it will be a loss of over $3 million to the group of farmers who supply them."

Mr Cochrane said Parmalat wanted to drop the price it paid to farmers by 1.5 cents per litre of fresh milk.

"The price right now for farmers is varied based on quality and volume, but it is around the mid-50 cents a litre mark," he said.

"Parmalat want to drop that in excess of 1.5 cents per litre."

Source: ABC

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