The ABC understands four received a letter from a company representative earlier this week, while a fifth had yet to be informed due to him being on holiday.
The letter, relayed over the phone to the ABC, cites a clause in an existing milk purchasing agreement, which outlines the reason for termination.
«Either party may terminate this agreement by giving the other party six months’ notice,» the letter reads.
«The Harvey Fresh milk supply has grown steadily over the past two years at the same time as growth in export sales has not gone as strongly as expected following the sale of low class milk from Europe and Asia.
«As a consequence, Harvey Fresh has now more milk than it requires. Accordingly Harvey Fresh gives notice it is terminating the agreement in January and this will be our final day of collecting.»
A spokesperson for Harvey Fresh said a statement would be issued at some point in the next 24 hours. Farmers lobby group WA Farmers told the ABC it would not be commenting until it read the statement from Harvey Fresh.
Planning an exit strategy
The development follows the announcement by processor Brownes in May that the contracts of four of its suppliers would be not be extended past September.
One of those four, Dale Hanks, said he had been unable to secure, or even attract interest from any of the state’s other processors.
Mr Hanks had been producing just under 3 million litres a year from his 360 cows in Harvey.
«We’ve started working on our exit strategy out of the industry,» Mr Hanks said.
«Exactly what that plan is we’re still not sure, but we’re looking at selling spring carving cows, culling the bottom end of the herd or a couple other options.»
Mr Hanks said the issue was further compounded by a «looming threat» of the September deadline and the milk his cows were still producing.
«We’re dammed either way,» Mr Hanks said.
«I’m either dammed by the Environmental Protection agency for dumping milk down the drain or I’m dammed by the RSPCA for not milking my cows. Either way we’re in a horrible situation that we’re having trouble dealing with.»
Source: ABC
Link: http://www.abc.net.au/news/2016-07-06/wa-dairy-farmers-contracts-terminated/7574086
