Price cuts, clawbacks ‘blew up’ milk system


Australian Competition and Consumer Commission chairman Rod Simms.

The milk payment system that allowed Murray Goulburn and Fonterra to last year slash prices and claw back milk payments from farmers copped a blast from the Australian Competition and Consumer Commission (ACCC) chairman in Warrnambool on Monday.

Speaking after an ACCC forum with south-west dairy farmers, Rod Simms said the price cuts and payment clawbacks last May had “blown up” the milk cooperative system.

Mr Simms said the dairy processors’ actions had imposed “all the risk” on their farmer suppliers.

“That is not an even system,” Mr Simms said.

Cobden dairy farmers Duncan, left, and Ian Morris at the ACCC forum in Warrnambool. Duncan Morris is a former Murray Goulburn director. 

He said the…


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