Claims by the former Murray Goulburn (MG) chief executive Gary Helou that corporate regulators were yet to contact him, have been met with alarm by a Victorian dairy industry leader.
United Dairyfarmers of Victoria (UDV) president Adam Jenkins said he respected the position of both the Australian Competition and Consumer Commission (ACCC) and ASIC in seeking answers on the dairy industry.
But he said he was concerned at Mr Helou’s claims, to the Senate dairy inquiry, he had not been approached by any of the relevant authorities investigating whether investors were misled in relation to the company's prospectus.
“We are a long way down the track from when they initially said they would report,” Mr Jenkins said
“I find it unbelievable that someone like him has not been contacted by ASIC or the ACCC at this time.
“We need some action, a soon as possible.”
Murray Goulburn and Fonterra cut farm gate milk prices in April, last year.
Mr Helou blamed the Chinese regulatory cross-border changes that saw MG products pulled from e-commerce channels for the failure to meet market forecasts and the subsequent price cut.
Mr Helou, who appeared via teleconference as an invited guest at the inquiry, and who did not make an opening statement, faced heavy questioning from committee chair Senator Chris Ketter and Senator Nick Xenophon.
He denied misleading the market, despite concerns being expressed by others about global dairy commoodity prices.
"We didn't mislead, I didn't mislead, we acted on the best information available to us at the time," he said.
He also denied, under questioning from Senator Xenophon, telling the Global Food Forum just two days before the price cuts were announced that the $6 price was still achievable that season.
He said the discussion had been about the "aspirational price" that he wanted to achieve consistently in the long term.
Mr Jenkins tweeted he had "fallen off his chair", when he heard Mr Helou’s comments, adding the regulators needed to finalise their inquiries quickly.
He told the Senate inquiry he was “very, very disappointed that Mr Helou hasn’t been interviewed.
“We are dissapointed there has been no outcome, from the start of investigations, last year.”
He said trust had been damaged and needed to be restored, while delays were also having a detrimental effect on investment.
“We need to make sure they come out very, very quickly to restore trust and confidence.
“We are still waiting for the ACCC to give us answers, farmers are still waiting -what happened last year, can still actually happen.”
“Our industry needs clarity to stop this action ever happening again,” Mr Jenkins said.
It was not acceptable for farmers to bear the risk of decisions made further up the supply chain.
Mr Jenkins called on the ACCC and ASIC to issue a communications plan, to show where they were with their investigations, having missed three deadlines already.
“People are concerned it will end up, like a lot of other investigations, on a shelf somewhere – it’s too big an issue for us, an industry, to let go.”
Mead dairy farmer and MG supplier Di Bowles said she was disappointed Mr Helou showed no remorse.
She took issue with Mr Helou’s claims the regulatory changes had a “no material impact on Murray Goulburn’s business.”
“It’s not just financial, it’s mental health, the effect on communities and lack of trust.”
Dairy farmer Paul Weller, a former MG director and Victorian Farmers Federation (VFF) president said farmers relied on the company to inform them, as to what was happening.
“We, as farmers, rely on them for information and we make business decisions on what they tell us,” Mr Welller said.
Farmers believed MG that the co-operative would continue pay $5.60 a kilogram milk solids.
“I think the major concern all the way through, from about the October before, you had Dairy Australia and other company’s saying this price is not sustainable.
“We were all believing MG was saying they could continue to do it, and their strategy was working.
“In hindsight it appears it wasn’t working.”
ACCC chairman Rod Sims said his organisation was at an advanced stage of its investigations, including whether the cuts raised implications under the misleading or deceptive conduct - or unconscionable conduct - provisions of Australian consumer law.
“The Murray Goulburn and Fonterra investigations are a matter of high priority to the ACCC,” Mr Sims said.
“Due to the continuing nature of the investigation, we cannot comment further at this time.
