Karrinjeet Singh-Mahil and Brian Schuler, dairy farmers from Crossley in southwest Victoria, yesterday launched a petition on the change.org website, calling on Fonterra to refund all missing payments fully for all milk supplied in the 2016 crisis year.
Fonterra chief executive Rene Dedoncker announced this week that, after rival Murray Goulburn decide to “forgive” all its so-called farmer overpayment debts, it would also pay its farmers an extra bonus payment of 40c a kilogram of milk solids, on top of its $5.13/kg 2016 price, to make up for the crashed and “clawbacked” prices.
But instead of refunding 1100 farmers the extra money in a lump sum payment in proportion to milk each supplied two seasons ago, Fonterra will add the bonus 40c/kg to the price of milk supplied during the coming 2017-18 year as a form of inducement to increase milk production.
The move leaves about 80-100 farmers who no longer supply Fonterra with no refund cheque, but instead rewards new farmers who have switched to Fonterra in the past year, or who may be considering it, with significantly boosted returns in sight.
“On May 5, 2016, Fonterra dropped what it paid Australian farmers by 70 per cent, sending many farmers out of business (while) others had to sell cows to pay bills; many are still in terrible financial straits and cannot afford to buy daily necessities such as food or fuel,” Ms Singh-Mahil writes in her petition.
“Fonterra recently announced it would take the money it stole from farmers in May and June 2016 to try to bolster their milk price in 2017/18 so as to attract more farmers to supply them.
“Help us send a clear message they need to pay everyone back; leave their products on the supermarket shelves — Western Star Butter, Anchor milk and cream, Perfect Italiano cheese, Mainland cheese and Woolworths milk.” Mr Dedoncker said Fonterra needed more milk than the 1.7 billion litres it would receive this year to keep its seven processing plants, including its $140 million Stanhope cheese factory, operating efficiently.
He hopes the expected price for the 2017-18 season of an effective $5.70 to $6.10/kg milk solids, well above the present $5.20/kg price, will encourage existing farmers to buy and milk more cows and other dairy farmers to switch to Fonterra.
Farmer Power group executive director Garry Kerr yesterday demanded full compensation for last year’s clawback, including repayment of interest charged on the imposed loans. “We also want an apology for the grief this has caused to their families over the past 12 months of hardship. Nothing else will do,” Mr Kerr said.
ACCC agricultural commissioner Mick Keogh said yesterday the current pricing situation was complex and confusing.
He agreed the new bonus payments, refunds and “forgiveness” of overpayment debts relating to the 2015-16 milk season now raised questions about why the price shock and ensuing industry crisis price crash had been necessary at all.
Source: The Australian
