Fonterra price cut ‘opportunistic’, says United Dairyfarmers of Victoria president

“But to drop and claw back the price paid out is opportunistic and wrong,” Mr Jenkins said.

About 4000, or 80 per cent of, Victorian dairy farmers supply Fonterra and Murray Goulburn.
When Fonterra managing director Judith Swales announced the price cut — which could see farmers be paid as little as $1.91kg/MS for milk supplied during May and June this season — she said Fonterra had been required to maintain its price to match Murray Goulburn due to an agreement with the Bonlac Supply Company.
Under the BSC supply agreement Fonterra is required to match the “benchmark” price for milk — Murray Goulburn’s price.
Mr Jenkins said the UDV would strongly “scrutinise” the actions of the major companies.
He said that many dairy farmers across Victoria were feeling “angry, sad and let down” by Murray Goulburn and Fonterra’s decision to cut the milk price.
“The trust thing is hard,” Mr Jenkins said.