MURRAY Goulburn has written to its non-dairy suppliers in an effort to lower costs and improve farmgate milk prices.
Macarthur farmer Craig Dettling said the company’s latest action was “normal” and reduced costs which would flow on to farmers.
He said the company’s letter was seeking a lower price for the products they charged to the processor.
He said this did not include dairy farmers’ milk supply.
An article in The Australian had caused undue concern because it insinuated that farmers’ milk supply and costs were impacted, he said.
“They’re asking suppliers of products like packaging, labelling and chemicals to lower costs,” he said.
“They’re saying, ‘can you do a better deal’?”
Mr Dettling said the company’s efforts could have a positive flow-on effect.
“They’re doing everything they can to improve the farmgate milk price,” he said.
“It’s a normal thing that big companies should be doing to maximise efficiency across the board.”
Mr Dettling said various national reports had taken elements of the dairy crisis out of context.
He said south-west farmers had become “frustrated" with misreporting of the issue.
United Dairyfarmers of Victoria president Adam Jenkins said reporting on a national scale had the power to highlight the great work of Australian producers, to increase the value of their products and to raise issues affecting farmers.
“There’s an opportunity there to link the consumer with the producer and that’s great – that message needs to get through,” he said.
“But when it gets confused and people believe that every farmer has their ass hanging out of their pants, that’s not right.”
Murray Goulburn supplier-director Lisa Dwyer said the co-op “seemed to be the kicking boy for all the weakness in the industry”.
“Biased reporting is not only prolonging the negative sentiment, but I think it’s also failing to recognise the critically important role MG plays from a national and economic perspective, given its focus in rural and regional Australia,” she said.
Murray Goulburn released its 2016 financial reports last month, with a $40 million after-tax profit in the same year it slashed returns to farmers and paid a final dividend of $3.91 a share.
The company also revealed its directors had received a 50 per cent pay hike.
