The Victorian Government and the dairy industry have announced an $11.4 million support package to help dairy farmers battling retrospective price cuts.
Major processors Murray Goulburn and Fonterra have both dropped prices paid to farmers, saying that a drop in global demand is behind the move.
Farmers say the cuts mean they’re now being paid below the cost of production for the milk they produce.
Victorian Premier Daniel Andrews said along with the more than $1 million his government announced last week for mental health funding, he would set aside a further $4.5 million to support the industry.
Murray Goulburn will contribute $1 million to the fund.
The Gardiner Foundation has committed $1.4 million and Dairy Australia $2.4 million to the support package.
Mr Andrews said the government was yet to determine how it would spend the additional $4.5 million it was contributing.
“Our contribution is $4.5 million plus we announced some counselling funding last week,” he said.
“I want to take a little bit of time to sit and listen to dairy farmers and dairy farming communities and sit and listen to hear about what they think they would benefit most from.”
The United Dairyfarmers of Victoria will gain two full time support workers to support farmers, and Dairy Australia’s farmer support programs will be expanded as well.
The Rural Financial Counselling Service will receive $240,000 from the support package.
Source: ABC
