After 21 years the Scott dairy farm business in rural Victoria is on the brink of collapse under the weight of increasing debts from its milk payment contract with co-operative Fonterra.
Chloe Scott, 16, and her mother Melissa have been forced to move out of the family’s Boorcan home, leaving her father Brendan to work the property alone and deal with mounting costs.
Earlier this month, in the wake of a global price crash, both Fonterra and industry giant Murray Goulburn announced they would be slashing the raw milk price paid to farmers by up to 10 per cent.
In many cases farmers will have to repay hundreds of thousands of dollars because their milk did not sell at the same high price it was bought by processors.
Earlier this month both Fonterra and industry giant Murray Goulburn announced they would be slashing the raw milk price paid to farmers by up to 10 per cent causing chaos in the dairy farming community
Now the world’s largest dairy exporter, Fonterra has announced it will lift the price of farmgate milk again
The dairy processing giant Fonterra revealed its plan on Tuesday to increase the price it pays farmers for raw milk just weeks after it announced a serious reduction in pricing
Reports have been circulating through the Victorian farming community that the pressure of mounting repayments is so bad that it has led to suicides in South Gippsland and Warrnambool.
‘It’s definitely been heard of, a lot of rumours are around like that, there’s a lot of that going on,’ Miss Scott said.
‘They (farms) are our family’s livelihood, I am worried for him [her father] because he is out on his own, he has already fallen off a tank, but he seems to be coping.’
Chloe Scott’s online petition calling on the Federal government to intervene has attracted great support
Under a separate plan to solve the milk prices crisis shoppers would pay up to 50 cents extra per litre for milk as desperate dairy farmers push for a ‘milk levy’
Mother and daughter are now in Ballarat where Melissa has found some much-needed work.
Miss Scott has urged the Federal government to intervene by way of a Change.org petition which has already attracted almost 63,000 supporters.
In it she states: ‘I am only 16 years old and have grown up on a dairy farm my entire life, but the massive cuts to milk prices – slashed by 10 per cent and more – have had significant and horrible impact on finances and our lives.’
‘Right now I am doubtful whether I will be able to continue to attend school, whether we go bankrupt or even be able to live life normally.’
Like many of his colleagues Mr Scott has been forced to reduce his cattle numbers significantly.
His daughter said that from a herd of about 170 he now works just 48.
‘It’s been little bit stressful for me, I shouldn’t really be worrying about it,’ she added.
‘I am worried for dad and how he’s coping and what is going to happen in the future.
‘My petition asks for Agriculture Minister Barnaby Joyce to step in and take action early to right this horrific wrong and to review the milk pricing system.’
As Murray Goulburn faces a class action by investors over the price war, Fonterra announced on Tuesday they would increase the gate price – for some farmers who have already sold off stock that announcement may have come too late.
Daily Mail Australia has requested further comment from Fonterra.
Farmers, meantime, hope that a ‘milk levy’ is a potential long-term solution.
It would mean shoppers may be forced to pay up to 50 cents extra per litre, with the extra amount to be passed onto farmers.
Last month, Australia’s biggest dairy supplier Murray Goulburn, which is renowned for its Devondale milk brand, announced it was no longer feasible to pay its suppliers from $5.60 to $6 per kilogram for milk and would drop prices to $4.75 to $5 per kilo.
The world’s largest dairy export company Fonterra slashed its prices from $5.60 per kilogram to $5.
Murray Goulburn blamed the stronger Australian dollar and poor sales of adult milk powder in China for its woes.
Chloe Scott and her mother Melissa have been forced to leave the family farm in Boorcan for Ballarat as debts began to take their toll on their dairy business
The wide expanses of the Scott property at Boorcan in the western districts of Victoria
It acknowledged that its suppliers would be hit hard by the lower milk price, especially given the very dry conditions in many areas.
Murray Goulburn chairman Phillip Tracy said growth in sales of adult milk powder in China had been extremely strong in the first half of fiscal 2016.
As a result of the increased demand in the first half, management significantly lifted forecast sales in the second half and increased production, but growth slowed.
Murray Goulburn consequently had to reduce sales forecasts and was left holding excess stock as a result of increased production.
Murray Goulburn acknowledged that its suppliers would be hit hard by the lower milk price, especially given the very dry conditions in many areas
Australia’s biggest dairy supplier Murray Goulburn recently announced it was no longer feasible to pay its suppliers $5.60 per kilogram for milk
President of Farmer Power Chris Gleeson said if each shopper were to pay an extra $50 per year on milk, the dairy industry ‘crisis’ would be solved.
President of Farmer Power Chris Gleeson said if each shopper were to pay an extra $50 per year on milk, the dairy industry ‘crisis’ would be solved.
Deputy Prime Minister Barnaby Joyce pledged to do more to help the Victorian farmers impacted by the move.
‘I understand their hurt. I’m going to try and get down there. We’re going to try and see what further we can do,’ he said.
Source: Dailymail