Deputy Prime Minister Barnaby Joyce chaired a symposium involving dairy farmers, processors and retailers in Melbourne today and again committed the Government to establishing a commodity milk price index.
Joyce said in a statement the index will cost up to $2 million to implement and that the meeting allowed stakeholders to express their views on its introduction.
The symposium comes in the decisions of major dairy processors, Murray Goulburn (MG) and Fonterra to retrospectively cut farmgate milk prices in April. As a result of the cuts, MG suppliers now owe the company an average of about $100,000 each.
“Recent events have shown there is a need for the industry to better balance risk along the dairy supply chain, especially when it comes to managing the effects of lower world prices,” Joyce said in a statement.
“Ultimately, I want to see improved farm gate returns for dairy farmers, an openness in milk price arrangements and fair and transparent milk supply contracts.
“This can only happen if there is buy-in from industry and a willingness from key stakeholders to hear each other out and develop solutions together.
Joyce also reiterated that the Government is assisting dairy farmers through its $579 million support package.