Dairy giants Murray Goulburn and Fonterra have dropped the price of milk solids to below the cost of production for many farmers, leaving some out of pocket by more than $3,500 a month.
The Australian Securities and Investment Commission is inquiring into Murray Goulburn’s actions and the Australian Consumer and Competition Commission has since confirmed it is investigating both companies.
Dan Tehan, the federal member for Wannon, in Victoria’s south-west, said the Federal Government would await the findings of both inquiries, but would look to roll out an assistance package for struggling farmers in the meantime.
«Obviously it’s been very important to make sure we’ve consulted with the industry and have targeted the help as necessary,» he said.
«It’s still being put together, but some of the things being considered are how we can help when it comes to rural financial counselling and whether we can look at tailoring the drought concessional loans so they are specific to what has occurred in the dairy sector.»
Agriculture Minister Barnaby Joyce has already pointed to drought concessional loans as an option for the dairy industry.
Milk levy ‘simplest way’ to help farmers
Vice president of advocacy group Farmer Power Alex Robertson said similar schemes had proven too difficult to access.
«I think it’ll be a waste of time, previous efforts in putting these packages together have shown they’ve made it too hard and unattainable for farmers to access,» he said.
«The last time they offered these things, most of the money ended up still sitting in the Government’s hands, so I don’t see how it would change this time.»
But Mr Tehan said tailoring the scheme would ensure all dairy farmers were eligible for financial assistance.
«The idea is to make sure that they are specifically targeted so they would almost become dairy concessional loans rather than drought concessional loans,» he said.
«Obviously it’s going to be very important that Barnaby [Joyce] hears what the dairy industry needs during his visit this week.»
Mr Robertson said any federal assistance package should include a 50 cent levy on fresh milk sales.
«That would be the simplest, quickest and easiest way to do things,» he said.
«It would remove a lot of the rhetoric and paperwork, and consumers are willing to pay that if it goes directly back to the farmers, and that’s what needs to happen.»
«The supermarkets have had 15 years to get this deregulation right and they haven’t, and the processors are sitting there twiddling their thumbs.»
Source: ABC