TEMPERS flew at the WAFarmers annual dairy conference at Busselton, Western Australia, last week during an open panel discussion with leaders from WA’s milk processors.
Four dairyfarmers with Brownes and five with Harvey Fresh have not had their contracts renewed in the past six months despite some being given assurances sometimes only weeks earlier that they would be renewed.
The farmers were given an opportunity at the conference to confront the companies bosses during an open panel discussion.
Brownes chief executive officer Tony Girgis said they were working with WAFarmers to come up with a structure that could bring back the farmers.
Mr Girgis said it hinged on his company being able to process milk into cheese but it would be a “slow and painful process”.
“We are at least trying, we have not come up with an outcome that works but it gives everyone time to find a solution,” he said.
Harvey Fresh general manager Paul Lorimer said he would not be able to provide a guarantee to farmers but the current situation was that they did not have a home for the oversupply of milk.
“It is not nice when you get a call from your Chinese distributor who said cartons for the next 12 months, which was going to be 12 million, is now two million - you have to make some calls,” he said.
Capel, WA, dairyfarmer David Hutton was one of the farmers who did not have his contract renewed with Harvey Fresh.
Mr Hutton said the future of his farm remained uncertain but there were options if his milk contract was not required.
“We had the partnership split on June 30, my brother went beef, then we had the notice that we will not be picked up after January 7,” he said.
“We were three days into our mating program for our April calving.”
Mr Hutton said it was now hard to change his tack and despite the setback had carried on with his breeding program and offloaded 42 cows to Pakistan.
WAFarmers’ dairy council president Phil Depiazzi, retiring at the conference, said despite the industry growing seven per cent, oversupply was an issue for processors.
Mr Depiazzi said low global commodity prices made it hard to shift the last litres of milk, which resulted in Brownes and Harvey Fresh not renewing contracts.
The dairy council met with the state Minister for Agriculture and Food Dean Nalder, Forrest MP Nola Marino, the Australian Competition and Consumer Commission and milk processors to discuss options for dairyfarmers.
