Dairy companies battle it out in Australia to entice farmers

Fonterra Australia may have difficulty in sourcing enough milk for its upgraded Stanhope cheese factory, says a Kiwi dairy farming couple who have decided to cut their links with the co-operative. By GERARD HUTCHING
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

But the dairy giant says that while it lost some suppliers last season after it drastically cut its milk price, «we have had record recruitment this season, sourcing new milk across all our regions in Victoria and Tasmania».
In May Fonterra reduced its payments for the 2015-16 season from $5.75 to $5 per kilogram of milksolids, but in order to make an average payout price of $5 for the whole season, it reduced its payout to $1.91 for the last two months.
Its current average farmgate price for the 2016-17 season is A$5.10 per kg/MS.
Karrinjeet Singh-Mahil and Brian Schuler, formerly from Waikato, said they were fed up with how they had been treated by Fonterra, and had decided to shift their allegiances to rival Murray Goulburn.
«It’s a difficult decision for Kiwis, Brian once worked at the Waitoa factory. It’s the first time we’ve moved dairy companies in 30 years,» Singh-Mahil said.
Murray Goulburn, Australia’s largest co-operative, had supported its farmers through bearing their debt, whereas Fonterra offered suppliers loans but charged interest of 3.95 per cent on them.
Now Fonterra is attempting to entice farmers in Murray Goulburn’s heartland, in order to supply its Stanhope cheese and powder plant. Partly destroyed by fire in December 2014, it is due to reopen in July 2017 and will require 50 per cent more milk.
Not only has Fonterra lost suppliers, but the drop in dairy prices has seen a decline in production in Australia of 7 per cent over the past year.
Matt Watt, general manager milk supply Australia, said the co-operative had «good interest from farmers in the area about partnering with us and we’re exploring these opportunities».
Milk collected in northern Victoria at present from 260 farms goes into the Stanhope plant to make a range of specialty cheeses for the Australian market, including Perfect Italiano cheeses, parmesan, pecorino, romano, gouda and ricotta cheeses.
Stanhope also produces ghee, anhydrous milk fat, whey powders and milk powders for world markets.
When the new plant comes online mid-2017, it is expected to produce 45,000 tonnes of cheese a year for both domestic and export markets.
Meanwhile, Murray Goulburn has appointed former global beverage executive Ari Mervis as its new chief executive and managing director, on a salary of $1.6 million a year.
Source: Stuff
Link: http://www.stuff.co.nz/business/farming/87483193/dairy-companies-battle-it-out-in-australia-to-entice-farmers

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar